Caesars wins support from pro-bankruptcy creditors

The casino operator's deadline to sign USD 3.8 billion of first-lien investors to its restructuring plan for CEOC is January 12. The terms were part of Caesars agreement with investors including Elliott Management and Pacific Investment Management Company (PIMCO).

Caesars close to getting enough support

Caesars need the support of at least two-thirds of its bondholders to be able to gain a court approval for its bankruptcy related reorganization proposal.

The transaction between BlackRock and pro-bankruptcy creditor group allowed Caesars to move closer to its goal, according to people familiar with the matter. By the end of December Caesar already signed in 39% of first-lien bonds. Yesterday, Caesars announced that it already receive the support of investors that collectively own or will own 55% of the first-lien bond claims.

In a statement, Gary Loveman, chairman and CEO of Caesars Entertainment said, “We are pleased with the early support of our creditors as we move forward in implementing our previously announced restructuring plan to strengthen CEOC’s

financial condition and better position the Company for future growth, investment and success.”

Caesars restructuring plan Caesars Entertainment entered an all-stock merger agreement Caesars Acquisition Company (CAQQ) to support its restructuring plan for CEOC. Under the reorganization plan, CEOC will voluntarily file for chapter 11 bankruptcy in the middle of January 2015. This will significantly reduce its debt from USD 18.4 billion to about USD 8.6 billion. Its annual interest payment will be cut to around USD 450 million from USD 1.7 billion.

According to DealBook, BlackRock left the negotiation table before the restructuring plan was signed by bond holders in December based on information familiar with the matter.

The media entity obtained a video recording indicating that TPG Capital is expecting BlackRock to return to the table. TPG’s lawyer Clibe Bode was heard saying in the recording, “The big one that’s outstanding is BlackRock. The indications are now, BlackRock’s coming in.”