SBC News Caesars Entertainment's debt talks hit deadlock

Caesars Entertainment’s debt talks hit deadlock

lawyersCaesars Entertainment Corporation’s (CEC) year-long negotiations with creditors regarding the bankruptcy of its debt-burdened operations division ‘Caesars Entertainment Operations Company’(CEOC) has hit a deadlock according to mediator Joesph Farnan.  

Updating Chicago’s bankruptcy court, Farnan detailed that negotiations were not progressing as CEC is unwilling to provide new concessions to its creditors. Furthermore, Farnan would detail that there would be “no likelihood of material progress in the discussions,”

Despite CEC governance offering in May to pledge $4 billion in cash and corporate debt towards the repayment of CEOC creditors, representatives of debt-owners have publically criticised the company of contempt towards CEOC + $20 billion debt.

CEOC creditors are reported to be unhappy at legal caveats that have been attached to $4 billion repayment by CEC, which states that debt-owners would have to forfeit any current or future lawsuits against Caesars relating to the bankruptcy filing.

Furthermore, creditors have accused CEC governance of purposely hiding valuable assets from the CEOC bankruptcy filing, which could have been individually sold-off to help ease the unit’s debt burden.

US business news sources have reported that the further lawsuits charged against CEC by creditors could cost the company approximately $5.1 billion in legal pay-outs, with a number of analysts stating that this outcome would effectively bankrupt CEC entirely.

Check Also

SBC News Eric Frank: Odds On Compliance - Operators must accept patchwork of US laws 

Eric Frank: Odds On Compliance – Operators must accept patchwork of US laws 

Beginning a new feature series for SBC, Brand Ambassador Ilya Machavariani Senior Partner and CEO …

SBC News GVC strengthens Board’s expertise with two appointments

GVC strengthens Board’s expertise with two appointments

GVC Holdings has strengthened its corporate governance confirming the appointment of two new directors to …

Copyright: maxym / 123RF Stock Photo

BetChicago preps for sports betting with Sportradar link-up

Sports betting news and analysis providers BetChicago has announced its preparation for legalised sports wagering, …