Caesars Says Parties Made `Significant Progress' in Debt TalksBy
Caesars Entertainment Corp. said it made “significant progress” in reaching a debt-restructuring agreement.
Discussions are continuing between the casino operator’s parent and operating companies and all of its major creditors, Caesars said in a statement on Monday. It’s “working vigorously and collaboratively” on the details of the plan and the company is “optimistic that an agreement will be reached,” according to the statement.
The stakeholders must determine how to divide a $400 million payout called for in a new plan the company offered last week, people familiar with the matter said at the time. Las Vegas-based Caesars is seeking to finance the reorganization of its operating unit and end two years of court battles that embroiled the firm and its controlling shareholders, Apollo Global Management LLC and TPG Capital.
A proposal under discussion would require the operating unit’s most senior bondholders and lenders to give up $170 million of their original recoveries, while Caesars provides $200 million, the people said. The unit’s lower-ranking, second-lien bondholders, a group that includes Appaloosa Management, would forgo the remaining $30 million, the people said.