The proposed restructuring of U.S.-based casino operator Caesars Entertainment Corp may face difficulties as a group of creditors is seeking better terms, Bloomberg News reported.
The report says that a group of Caesars Entertainment’s senior bondholders has hired a law firm to negotiate with the casino operator. The group reportedly owns US$1.6 billion in first-lien notes from subsidiary Caesars Entertainment Operating Co Inc (CEOC) .
“The company and its advisors continue to actively work with its creditors to gain further support for the transaction,” Caesars Entertainment said in a press release on Thursday.
The firm and CEOC announced that as of Wednesday, 19 institutions that hold 53 percent of claims in respect of CEOC’s senior bonds had already agreed with the restructuring plan.
“Subject to the closing of certain purchases of additional first lien notes, the consenting creditors will hold, in the aggregate, 55 percent of the first lien bond claims,” the firm said.
The Caesars group needs to get the support of the holders of at least 60 percent – or US$3.8 billion – of claims in CEOC’s senior bonds by next Monday to go ahead with the restructuring. The deadline has already been extended from the original deal.
The plan involves a voluntary bankruptcy of one company unit and other financial measures that combined should eliminate nearly US$10 billion from the group’s debt load.
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Alvin Chau Cheok Wa
Chief executive of privately-held VIP junket business Suncity Group