Caesars’ Assets Insufficient to Satisfy Lenders: Distressed Debt
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Yields on bonds from a Caesars Entertainment Corp. unit are diverging in a sign that the casino company will be unable to satisfy warring creditor classes and increase the odds of a bankruptcy.
“It’s difficult to understand how a workout would take place and bind classes outside of bankruptcy,” said Janegail Orringer, a credit analyst who follows casino bonds at AllianceBernstein Holding LP, which manages $486 billion. “I don’t assign a high likelihood of success to an out-of-court outcome,” she said by telephone.