Caesars Lender Silver Point Said to Exit Debt NegotiationsLaura J. Keller
Silver Point Capital LP, a creditor of Caesars Entertainment Corp.’s largest unit, exited talks to restructure the casino operator’s debt, according to three people with knowledge of the negotiations.
The Greenwich, Connecticut-based hedge fund is at least the second lender to quit negotiations in the last month. Perry Corp. also left, people with knowledge of that move said Oct. 29.
Silver Point didn’t extend a non-disclosure agreement that gave it access to private information meant to facilitate talks to reorganize $18.4 billion of debt, said the people, who asked not to be identified because the decision isn’t public. Silver Point stopped negotiating on Nov. 6, according to a fourth person with knowledge of the decision.
Caesars disclosed in a regulatory filing today that it proposed restructuring Caesars Entertainment Operating Co. by turning it into a real estate investment trust. It revealed the plan because disclosing the material non-public information Silver Point saw would allow the money manager to trade Caesars debt again.
Gary Thompson, a spokesman for Las Vegas-based Caesars, and Adam Weiner, a spokesman for Silver Point at Kekst & Co., declined to comment.
The casino company is seeking to reorganize its biggest unit, Caesars Entertainment Operating Co., after losing money every year since 2009. It was loaded with debt after Apollo Global Management LLC and TPG Capital took it private for $30.7 billion in 2008 and has been in talks with holders of its loans and bonds.
Caesars reached an agreement regarding the principles of a prearranged bankruptcy earlier this month with first-lien bondholders including Paul Singer’s Elliott Management Corp. and Pacific Investment Management Co., people with knowledge of the negotiations said Nov. 11.