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 for instance a shell game, and seem like you are taking action by filing a near-Obamacare sized document with the Securities and Exchange Commission (SEC).

The organization just filed a huge 900-page treatise with the SEC, outlining how their financial obligation restructuring would take place, in the event any one of you’ve got a long flight and need help drifting off to sleep on board.

Restructured, But Not Out of Financial Obligation

The key term here is ‘restructuring,’ because nothing within the SEC filing actually shows any substantial techniques towards immediate paydown of their industry-high accrued long-lasting debt of $23.5 billion. Just to put that in perspective, that amount is higher than what Detroit owes the American town that this summer took the honor of becoming the largest U.S. municipality to ever apply for Chapter 9 bankruptcy protection over its $18 billion in debts.

And like Detroit, Wall Street doesn’t always have much positive to say about the way Caesars is taking, despite the fact that, like its namesake, the company keeps expanding and extending its rule to all corners of the world. A year ago, despite bringing in a few $8.6 billion in profits, they finished 2012 with a net loss in $1.5 billion. Along with more than 50 casinos in 13 U.S. states with many of those properties still getting back on their feet as they push out of the dark hole of the recession there’s a great deal at risk here; Moody’s Investor Service a globally recognized business which provides credit reviews and research debt that is covering 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 summit that Caesars debt which is $10 billion more than competitor MGM Resorts International was ‘manageable,’ he did acquiesce that ‘others disagree’ july. And debt that is new company happens to be taking on 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 brand new entertainment, dining and shopping outlets, plus a 550-foot-high observation wheel- in addition to a brand 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 a much-vied-for casino license in Massachusetts. After that 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 touch too ridiculous for their taste, and just withdrew from that project entirely. And as they have now eliminated Gansevoort from their upcoming new boutique hotel where the former Bill’s Gamblin’ Hall as soon as stood in the Las Vegas Strip, the $185-million task itself will stay under a brand new, 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 were provided the chance if you can phone it that to buy one share in the Acquisition brand for each share regarding the Entertainment brand they held. Obviously, there’s no necessity become Einstein to see that also if every cent of that raised money had been going towards debt paydown, it couldn’t begin to pay for even 1/10th of what’s owed.

However, nearly all of that money will get towards building and development costs for the company’s new U.S. casinos, also as its burgeoning WSOP online brand, which is currently up and running in Nevada, and you will be come November 26th in New Jersey, when that state launches its online casinos legally.

To be fair, maybe not every analyst views Rome burning here (we leave few easy metaphors unturned in these situs). For example, Eilers Research gaming analyst Adam Krejcik told investors that ‘while the deal structure (and) terms of the rights offering are complex, and concerns about Caesars’ capital structure will likely persist, we believe the near-term bias for Caesars equity investors is to the upside given the ability to have (the holding company) at a really attractive valuation.’

Krejcik views the payback coming via social networking 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 simply $193.3 million, which is a long, long way from $23 billion. And even with quotes of these two divisions being projected at $283 million for 2013 (social video gaming players pay small costs 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 every minute.’