Potential end in sight for Caesars debt restructure

US business news sources have reported that the governance of Caesars Entertainment Corporation (CEC) are closing in on a final resolution with senior creditors relating to the $18 billion debt restructure of its ‘Caesars Entertainment Operating Company’ (CEOC).  

90% of Caesars creditors are reported to have accepted terms relating to the CEOC debt reorganisation.  Furthermore, debt stakeholders have chosen to ‘drop concerns’ in order to progress the matter which has been in US bankruptcy courts since January 2015.

CEC governance will now move to a January 17 bankruptcy hearing, which will review its latest debt plans as concerned parties seek final closure. Under the new terms, current shareholders will own approximately 6% of a newly restructured business entity should the plans be approved.

In May 2016, Chicago courts ordered CEC governance to pay $4 billion to first lien creditors. CEC governance who had kept apart valuable corporate assets from the bankrupt CEOC division would sell its interactive division’s Playtika Studios to a Chinese consortium for $4.4 billion (cash deal announced August 2016).

Entering what could be CEC final court hearing regarding the firm’s long drawn debt battles, US legal business sources have estimated that CEC governance has spent + $300 million on legal services.

Caesars debt issues emerge from the troubled private equity buyout of what was Harrah’s Entertainment Inc. in 2008 by Apollo Global Management and TPG Capital. At the time, the acquisition was valued around $28 billion, and was purchased in debt. To date all CEC assets have combined market cap valued at circa $1.2-1.5 billion