Caesars Entertainment continues to examine the White House debt management strategies, it would seem; namely, when you can’t spend off your debt, acquire more, move things around on paper such as a shell game, and appear to be you’re using action by filing a near-Obamacare sized document with the Securities and Exchange Commission (SEC).

The organization just filed a huge treatise that is 900-page the SEC, outlining how their financial obligation restructuring would take place, just in case some of you have a long flight and need help drifting off to sleep on board.

Restructured, But Not Out of Debt

The key term here is ‘restructuring,’ because nothing in the SEC filing actually indicates any substantial techniques towards immediate paydown of the industry-high accrued long-term financial obligation of $23.5 billion. Just to put that in perspective, that amount is greater than what Detroit owes the American city that this summer took the honor to become the largest U.S. municipality to ever apply for Chapter 9 bankruptcy security over its $18 billion in debts.

And like Detroit, Wall Street doesn’t have much positive to say in regards to the direction Caesars is using, even though, like its namesake, the ongoing company keeps expanding and extending its rule to all corners of the world. Last year, despite bringing in certain $8.6 billion in revenues, they ended 2012 with a loss that is net of1.5 billion. Sufficient reason for more than 50 gambling enterprises in 13 U.S. states with many of those properties still getting right back on their feet as they push out of the dark hole of the recession there exists a lot at risk here; Moody’s Investor Service a globally recognized company which provides credit reviews and research addressing debt instruments and securities has termed the Caesars’ debt load as ‘unsustainable.’

New Projects Coming On, Both Gaming and Non-Gaming

And while the company’s Deputy General Counsel Michael Cohen told the Nevada Gaming Control Board at the July summit that Caesars debt which is $10 billion more than competitor MGM Resorts Overseas was ‘manageable,’ he did acquiesce that ‘others disagree’. And new debt the company is now dealing with will go towards financing both its $550 million Linq development on the Las Vegas Strip a 300,000-square-foot al fresco development that’s to add new entertainment, dining and shopping outlets, plus a 550-foot-high observation wheel- as well as a new 668-room tower add-on at their flagship Las Vegas Strip Caesars Palace property.

One prepared partnership for Caesars just fell off their docket last week, and that was a minority stake with Suffolk Downs Race Track near Boston for the much-vied-for casino license in Massachusetts. From then on state’s Gaming Commission uncovered some so-called unsavory ties with now-removed partner Gansevoort involving some six-degrees-of-separation with the Russian Mob, Caesars decided the nosey that is insanely’s reviews were a little too ridiculous for their taste, and simply withdrew from that project altogether. And while they have actually now removed Gansevoort from their upcoming new boutique hotel where the former Bill’s Gamblin’ Hall as soon as stood on the Las vegas, nevada Strip, the $185-million project itself will continue under a fresh, as-yet-unselected hotel-casino name.

The company’s Interactive gaming division and its under-construction Baltimore Horseshoe into a new publicly traded holding company, Caesars Acquisition Co., of which the Entertainment division will continue to own 57 percent, while holding a buy-back option for the other 43 percent in three years in essence, the restructuring plan is this: Caesars Entertainment raised $1.18 billion by moving ownership of Las Vegas Strip property Planet Hollywood. Stockholders had been offered the opportunity in the event that you can call it that to get one share in the Acquisition brand for each share associated with the Entertainment brand name they held. Obviously, you do not have to be Einstein to even see that if every cent of that raised money had been going towards debt paydown, it mightn’t begin to cover even 1/10th of what’s owed.

However, most of that money will go towards building and development expenses for the business’s new U.S. casinos, also as its WSOP that is burgeoning online, which is already up and running in Nevada, and will be come November 26th in New Jersey, whenever that state launches its online casinos legitimately.

To be reasonable, perhaps not every analyst sees Rome burning here (we leave few metaphors that are easy in these situs). As an example, Eilers Research gaming analyst Adam Krejcik told investors that ‘while the deal framework (and) regards to the rights offering are complex, and questions about Caesars’ money structure will likely persist, we believe the near-term bias for Caesars equity shareholders is to the upside given the opportunity to acquire (the holding company) at an extremely attractive valuation.’

Krejcik sees the payback coming via social media and casinos that are mobile which are offered via Playtika and Buffalo Studios, two subsidiaries of Caesars. Having said that, the 2012 total interactive revenues for these groups was just $193.3 million, which is a long, long way from $23 billion. As well as with quotes for these two divisions being projected at $283 million for 2013 (social video gaming players pay small charges to make their virtual stacks grow), we are reminded of the famous saying oft-attributed to circus mastermind P.T. Barnum:’There’s a sucker born www.huuuge.com every minute.’