Caesars’ Entertainment Restructuring Deal In Jeopardy After Lenders Threaten To Terminate Support

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Caesars Casinos

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Caesars’ troubles are far from ending soon after a group of her lenders who include banks threatened to pull out their support. If their threats are serious, then the $18 billion restructuring process, which would see the establishment one of the real money casino gambling sites come back to life again will be an envision.

On Monday, the casino said that the lenders, Securities and the Exchange Commission, which comprises Blackstone, the largest global equity firm, had denied accepting the new debt plan.

Over the last 12 months, a wave of challenges have marred Caesars, including massive web debts that experts say if drastic measures are not taken to salvage the casino, it will shut down indefinitely.

Caesars lenders hold more than $5.4 billion in debts from the casino’s operating unit, the capital structure and CEOC.

Chances Are Slim

If the lenders will continue to support, the casino is a question of whether or not the resort will avail proper documentation, which will ensure the stock’s market value, which is pertinent in the reorganization process.

According to the lenders, unless there is proper documentation, there is no way they are going to give a listening ear. To this, Caesars have only 2 days to respond, failure to which, the status quo remains.

A lawyer of one of the lenders said on Monday that the battle is between senior bondholders and the lenders themselves, and the way one of the groups is paid, is likely to have a profound effect on the rest. Therefore, according to Ken Pasquale, things should be done in unison.

He asserted that in the meantime, there has not been any agreement.

“There has not been any consensus on certain high-level matters. To me, it is as if we are only passing time and it is most likely that we may not get there any time soon,” said Mr. Pasquale.

Several Months Of Litigation

It should be remembered that Caesars thought that things would be easy when it first laid down the reorganization plan in 2015. This is the time they applied for bankruptcy (chapter 11) in order to allow it restructure. However, the move quickly instituted fierce resistance.

Junior bondholders were the leading group of lenders who opposed. As a result, several other lenders have since then sued Caesars Entertainment for their debts.

Apart from the debts, lenders are also accusing CE of its systematic strip of the bankrupt unit especially assets that are considered of most value.

Until a solution is found as lenders still hold, CEOC is likely to be spun off into something different, a real estate project, which is considered an alternative. Top

Rich Caesar

Rich Caesar

Rich Caesar is a part time writer for the Play Slots 4 Real Money online casino reviews, gambling news and mobile casino complaints site. He grew up in Las Vegas and worked in the casino gambling business for several years. We are proud to have Rich as a part time writer on our site.


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