Caesars Entertainment to contribute $4bn to unit’s restructuring

According to a lawyer representing Caesars Entertainment Corp’s bankrupt unit, the parent company would contribute c.$4bn to the restructuring of its operating unit, Caesars Entertainment Operating Co., in exchange for release of broad liabilities.

The contribution would be made in the form of equity, cash and debt, and was more than the $1.5bn pledged earlier by parent company.

According to Caesar’s lawyer, it appears the parent company’s support for its operating unit is not entirely assured.

As per the new plan filed by Caesars, potential recovery on claims filed by creditors is as follows: 

  • Senior lenders would recover between 113 – 117% of their claims through a combination of cash, equity and debt.
  • Senior bondholders would receive between 96 – 128% on their claims through cash, debt and equity.
  • Junior creditors would have their debt converted to equity
  • Junior bondholders would recover between 22 – 48% of their claims subject to terms of the plan.
  • General unsecured creditors would receive between 30 – 46% on their claims.

The judge overseeing the case agreed to review the outline of the new plan at a hearing in June 2016.

Source: WSJ

 

 

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