Caesars Entertainment Corp.’s primary operating department has changed the way it intends to emerge from bankruptcy and wishes to prolong its period of unique control over its restructuring strategy by four months.
The division, referred to as Caesars Entertainment Operating Co. or CEOC, revealed today that it submitted an amended restructuring plan in bankruptcy court and asked to extend its exclusivity period up until March 15. Court records show Caesars’ exclusivity duration– throughout which no one else can file a competing restructuring plan– is because of expire Nov. 15.
Caesars stated in a statement that has assistance from lenders holding more than 80 percent of the division’s first-priority debt. It said the strategy also provides “improved recuperations” to junior creditors.
According to court records, the restructuring strategy would provide very first lien bank loan providers a 107 percent recovery through a mix of money and debt, while first lien noteholders would recuperate 88 percent via money, financial obligation and equity.
Non-first lien creditors, meanwhile, could get an 18 percent recovery through equity and financial obligation if they vote to accept the strategy. If they decline the plan, they might just receive a 5 percent recovery through equity, records show.
Caesars stated it has the backing of about $12 billion– or two-thirds– of the division’s capital structure and is continuing efforts to obtain junior creditors on board. Extending the exclusivity duration will offer the department with more time to aim to reach an agreement on the modified strategy.
The division, which went into bankruptcy in January, is looking for to trim some $10 billion in financial obligation that originates from a huge leveraged buyout in 2008. Caesars hopes to divide the department into a property investment trust that owns gambling establishment homes and an operating company that manages them.
The division’s amended plan “offers a tax-efficient business and balance sheet restructuring that maximizes the value of business,” Caesars said. The modified strategy likewise provides lenders recoveries that are “materially improved” from the original reorganization strategy, the business said.
Caesars Palace is the business’s only Las Vegas home consisted of in the bankruptcy filing, which likewise incorporates Caesars homes in Lake Tahoe, Atlantic City and other locations around the nation. The business noted today that the department’s company improved over the very first half of this year due to factors consisting of “marketing, labor effectiveness and strong hospitality incomes.”
Shares of Caesars were trading about 2 percent higher this afternoon.