Another shoe has dropped in the ongoing saga of the bankruptcy of Caesars Entertainment’s biggest unit. According to a late-breaking article in the Wall Street Journal on Wednesday, February 4th, Caesars CEO Gary Loveman is resigning and will be replaced by former Hertz CEO Mark Frissora. The company’s statement notes that Frissora is scheduled to take the position on July 1st.
Of note, Loveman will stay on as chairman of Caesars Entertainment and Caesars Entertainment Operating Co. He will continue to assist in the process of restructuring CEOC, Caesars largest division, which filed for Chapter 11 bankruptcy protection last month.
As reported by ValueWalk, the bankruptcy filing follows months of legal wrangling and contested negotiations with creditors regarding distribution of assets. The casino company has suffered declining performance for some years now, and a 2008 leveraged buyout by Apollo Global Management and TPG damaged the company’s balance sheet so much that it was never able to recover.
Statement from Caesars CEO Loveman
Loveman, a former academic, came on board with Caesars in 1998 as chief operating officer and became CEO five years later.
“Caesars has accomplished more than what we could have imagined when I arrived,” Loveman noted in his statement. Although the company has grown under his leadership, given last month’s bankruptcy filing, some might find this claim ironic or even amusing.
He also said he believed “the time is ripe for a transition,” given that the firm is “in the midst of a formal restructuring of one of its [largest] subsidiaries.”
“My decision to begin to transition management now comes with the confidence that we have taken the steps necessary to ensure the company’s long-term success,” Loveman said in closing.
More on Mark Frissora
Frissora is joining the Caesars board immediately and will work with the BoD and Mr. Loveman during the transition period. His CEO position is subject to regulatory approval.
He resigned from his position as Hertz CEO in September, after the rental car firm reported weak results and accounting irregularities.