Updating the market Caesars Entertainment Corporation (CEC) has announced that it has agreed on terms with creditors to amend restructuring agreements for its bankrupt operating division ‘Caesars Entertainment Operating Co’ (COEC).
Issuing a filing with the Securities and Exchange Commission, CEC governance declared that it had reached an agreement with first lien creditors representing approximately two-thirds of aggregated COEC debt.
Restructuring terms, CEC detailed that its main debtors would agree to support and ‘not hinder’ the bankruptcy plan of its COEC unit.
The new agreement will see debtors obtain an order from the U.S. Bankruptcy Court authorizing payment of $300 million in cash as soon as practicable to holders of first-lien bank claims.
CEC’s progress on debt terms follows last week’s decision by Chicago bankruptcy Judge A. Benjamin Goldgar to halt temporarily planned legal proceedings against the company stating that lawsuits seeking circa $11 billion in compensation would kill any chance of a COEC effective bankruptcy plan.
The legal reprieve will be granted until 29 August, with Judge Goldgar stating that the chances of a further extension would be ‘slim.’
Despite agreeing on new terms with the majority of first-lien creditors, CEC still faces $ multi-billion lawsuits from bondholders in New York and Delaware courts