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Updating the market, Caesars Entertainment Corporation (CEC) has announced that it has settled one of several bondholder lawsuits filed against debt holding subsidiary Caesars Entertainment Operating Company (CEOC).
Filing a Securities and Exchange Commission notice on Wednesday, CEC governance detailed that it had settled with creditor Frederick Barton Danner a 6.5% bondholder in CEOC notes.
Danner representatives have confirmed that they will drop legal action against CEC and support the restructure of the bankrupt CEOC division.
As part of the settlement, CEC governance will pay Danner legal fees and provide extra cash to unsecured bondholders. Furthermore, CEC will provide any bondholders that back its CEOC restructuring plan with an additional cash incentive of 6.38 cents for each dollar debt held.
US high courts have urged CEC governance to speed up its CEOC restructuring plans with debt holders, since the division initially entered bankruptcy courts in January 2015.
In June, CEC governance declared that it had begun new restructuring negotiations with creditors as the company seeking to extend terms. The company has reduced the debt of its CEOC subsidiary to $18 billion following the sale of social gaming asset Playtika Studios to a Chinese-led consortium for $4 billion.
