Caesar’s restructuring talks face still opposition from junior bondholders

According to a retired federal judge brokering a restructuring deal for Caesar’s Entertainment Corp.‘s bankrupt operating unit, talks between the casino operator and a group of creditors have stalled, making settlement look unlikely at the moment.

It appears that Caesar’s declined to participate in a meeting with junior bondholders beyond the meeting held on 7 April 2016.

Caesar’s operating unit planned on restructuring c.$18bn of debt at the time of filing for bankruptcy which resulted in claims being filed by creditors, including junior bondholders.

It appears that as per Caesar’s latest settlement agreement, claims valued by the company at $4bn significantly undermined the value identified by junior bondholders at $12bn.

The operating unit’s restructuring plan would be put to vote in a Chicago court on Tuesday which faces opposition from all classes of creditors.

As per court filings made on Monday, Caesar’s operating unit stated that restructuring talks progressed well with senior and general class of creditors but its junior bondholders posed a significant challenge.

Source: WSJ

 

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