Seeking to soothe its fraught relationship with creditors, Caesars Entertainment Corp (CEC) is set to contribute approximately $4 billion to the restructure of the ‘Caesars Entertainment Operating Company’ (CEOC) unit.
The move sees CEC governance up its original debt pledge from $1.5 billion to the $4 billion mark, with the contribution set to be financed through cash and new debt for equity payments.
Caesars’ CEOC unit, which filed for Chapter 11 bankruptcy in January 2015, currently holds the majority of the group’s $20 billion debt, as the company looks to restructure its burdened units and assets.
The planned $4 billion repayment is CEC governance’s latest attempt at progressing a consensual restructuring plan for Caesars Group, which aims to avoid further corporate assets being consumed by the CEOC debt.
However multiple Caesars creditors have failed to back any restructuring plan put forward, stating the that bankruptcy and debt repayments have been mismanaged by Caesars officials and representatives prior to CEOC posting its Chapter 11.
As Caesars enters its seventeenth month negotiating with bondholders, this week US news sources reported that CEC governance was revising the potential sale of its Caesars Interactive Entertainment’ (CIE) division, targeting a $4 billion sell price for the asset.
CEC governance detailed that it is committed to completing its group restructure and satisfying bondholders. This month the company announced the appointment of New York Judge the Honourable Robert E. Gerber as Chief Restructuring Officer (CRO).