Caesars agrees deal to restructure debt
US casino group Caesars Entertainment has agreed a deal with private equity backers Apollo Global and TPG to restructure the company’s debt and emerge from an $18 billion (€16.1 billion) bankruptcy.
According to the Financial Times newspaper, the framework includes plans for second-lien bondholder Junior to set aside its lawsuits in exchange for receiving 66 cents in the dollar for its claims, up from a previous offer of 39 cents.
Junior had been pursuing claims of asset-stripping by both Apollo and TPG, but has agreed to the new deal, which will require a contribution from a number of other stakeholders in Caesars.
Apollo and TPG will relinquish their stake in Caesars Entertainment Corporation, the listed parent company, which is worth $950 million, but retain a small stake in Caesars through another listed affiliate company.
The Caesars operating subsidiary filed for bankruptcy protection in January last year when debts of €18 billion mounted up after a €31 billion leveraged buyout in January 2008.
The framework still requires approval from creditor groups, while confirmation of the bankruptcy must be made in court next year.
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