Creditors Try to Block Caesars Restructuring

Submitted by Reuters on

Written by :

Reuters

Published on :

Jan 12 (Reuters) - A group of second-lien bondholders of casino operator Caesars Entertainment Corp filed a petition for involuntary Chapter 11 bankruptcy protection against the company's largest unit after it defaulted on interest payments.

Caesars Entertainment Operating Co Inc defaulted on $225 million of payments due on Dec. 15.

The petitioning group includes hedge funds Appaloosa Investment Limited Partnership I and OCM Opportunities Fund VI LP, according to the petition filed on Monday.

The payments were due on principal of $4.5 billion.

The company elected not to pay the interest though it had about $1.5 billion of cash and cash equivalents and said it was taking advantage of a grace period, the bondholders said.

Caesars Entertainment Corp intends to file for bankruptcy for the unit by Jan. 20 and split into two companies.

The company said on Friday it had garnered enough support from key creditors to carry out its $18.4 billion debt restructuring plan for the unit.

Two-thirds support from first-lien noteholders has given the company the required backing to enforce its bankruptcy plan on those creditors who oppose it.

The casino operator has been weighed down with debt from a $29 billion leveraged buyout in 2008 by TPG Capital and Apollo Global Management.

The company's restructuring plan aims to reduce the debt associated with the unit to $8.6 billion from $18.4 billion.

Caesars shares were down 2.2 percent at $13.52 in early trading on the Nasdaq on Monday.

 

Related Content

Can't Play With Kalshi From Washington State - WTF?

Can't Play With Kalshi From Washington State - WTF?

Judge John McHale of the King County Superior Court said the state showed "a likelihood of actual and substantial injury ​to Washington consumers from illegal gambling activities" if no injunction (against Kalshi) were issued.
Knoxville Tennessee is Getting a New Nonstop Flight to Las Vegas

Knoxville Tennessee is Getting a New Nonstop Flight to Las Vegas

Southwest Airlines has announced it will begin flying nonstop flights between Knoxville, Tennessee and Las Vegas, Nevada on Saturdays and Sundays, which will compliment Allegiant Airlines Monday and Friday nonstop flights.
Rare Albino Alligator Sisters to Make This Marksville Louisiana Casino Their New Home

Rare Albino Alligator Sisters to Make This Marksville Louisiana Casino Their New Home

Native American tribes consider albino alligators extraordinary beings that are often associated with spirituality, renewal and the importance of respecting the natural world.
ISPs in France Ordered to Block Polymarket

ISPs in France Ordered to Block Polymarket

France’s gambling regulator said on Friday it had instructed internet service providers to block access to the ​Polymarket betting website, citing concerns that it ‌could expose users to significant gambling losses and that some wagers offered on the platform could be manipulated.