Caesars Receives Notice of Default From Bondholder-Led Group
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Bondholders sent a unit of Caesars Entertainment Corp. a notice of default, intensifying a battle with the largest owner of casinos in the U.S.
The notice was sent June 5 by investors owning at least 30 percent of Caesars Entertainment Operating Co. second-lien, 10 percent bonds due in 2018, according to a filing by Caesars yesterday. The creditors said the company defaulted on its obligations by transferring assets, such as Bally’s Las Vegas hotel, to an affiliate, and by removing the parent company’s guarantee on the operating unit’s debt. There are $3.7 billion of the notes outstanding, according to a filing.