Caesars Creditor Perry Said to Leave Restructuring Talks

Perry Corp., the $10.9 billion hedge-fund firm that is a creditor to Caesars Entertainment Corp.’s largest unit, walked away from talks to restructure $18.3 billion of the casino operator’s debt, according to a person with knowledge of the discussions.

The fund run by Richard Perry declined to extend a non-disclosure agreement that gave it access to private information meant to facilitate reorganization talks, said the person, who asked not to be identified because the information isn’t public. Caesars said in a statement today that a lender left the talks, though it didn’t identify the firm.

The casino company, which was loaded with debt after Apollo Global Management LLC and TPG Capital Management LP took it private for $30.7 billion in 2008, is seeking to reorganize its biggest unit, Caesars Entertainment Operating Co., after losing money every year since 2009. The company has been in talks with holders of its loans and bonds.

Caesars didn’t disclose details of proposals shared with the creditor that left the discussions, saying in a regulatory filing that they “contain outdated and materially different terms and information than proposals now being considered.”

Gary Thompson, a spokesman for Las Vegas-based Caesars, declined to comment beyond the filing. Michael Neus, general counsel at Perry, didn’t respond to telephone and e-mail messages seeking comment.

Negotiating Group

Franklin Resources Inc., GSO Capital Partners LP, HG Vora Capital Management LLC, KKR & Co. and Och-Ziff Capital Management Group LLC are among holders of the company’s term loans who remain in the talks, according to four people with knowledge of the matter who asked not to be named discussing the private negotiations.

Fortress Investment Group LLC, also a member of the lender group, never joined the talks after declining to sign the initial confidentiality agreement, said three people with knowledge of the matter.

Representatives of HG Vora, KKR and Och-Ziff declined to comment. Spokesmen for Fortress, Franklin and GSO didn’t immediately respond to requests for comment.

The casino operator is also continuing discussions with at least six first-lien bondholders including Beach Point Capital Management LP, BlackRock Inc., Brigade Capital Management LLC, Elliott Management Corp., JPMorgan Asset Management Inc. and Pacific Investment Management Co., two people with knowledge of those discussions said.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE