Caesars, owned by Apollo Global Management and TPG Capital, saw its unit, Caesars Entertainment Operating Co, file for bankruptcy in January last year, partly after its USD 30.7B leveraged buyout in 2008 ran into trouble during a slump in gambling.
According to Gambling Insider, Chicago courts ordered CEC governance to pay $4 billion to first lien creditors in May 2016. CEC governance announced in August that it had successfully sold its interactive division’s Playtika Studios to a Chinese consortium for $4.4 billion.
Not only have 90% of Caesars creditors have accepted terms of the CEOC debt reorganisation, but debt stakeholders have also decided to “drop concerns” in order to resolve the issue which has been ongoing in US bankruptcy courts since January 2015.
On 17 January, CEC governance will attend a bankruptcy hearing and review its latest debt plans with concerned parties who seek final closure on the matter. Should the plans be approved, current shareholders will secure approximately 6% of a newly restructured business entity.
Reportedly spending over $300 million on legal services, this could be final court hearing regarding CEC’s ongoing debt troubles.