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



Update on Lehman Brother’s Ninth Distribution

On 24 March 2016, Plan Administrators of Lehman Brothers Holdings Inc. announced that distributions to unsecured creditors would commence from 31 March 2016. However, the distribution will not include proceeds from the recently approved settlement with JP Morgan Chase Bank. The investment bank would pay $1.42bn to Lehman and its affiliates and release approximately $76.5m of restricted funds.

Lehman’s aggregate ninth distribution would total c.$1.6bn which includes:

  • $1.3bn of payments on account of third-party claims, including non-controlled affiliate claims
  • $0.3bn of payments among the Lehman Debtors and their controlled affiliates as outlined in Exhibit B of Docket # 5234

Taking into account the ninth distribution, Lehman’s total distributions to unsecured creditors will amount to c.$106.9bn including $78.5bn of payments on account of third-party claims, which includes non-controlled affiliate claims and $28.5bn of payments among the Lehman Debtors and their controlled affiliates.

The tenth distribution is anticipated to be made within 5 business days of 30 September 2016.

Source: Businesswire