Caesars proposes revised $4bn bankruptcy plan
Caesars Entertainment Corp. has offered creditors $4 billion (€3.6 billion) as part of a revised plan to help its casino operating unit emerge from Chapter 11 bankruptcy.
According to the Reuters news agency, creditors will receive a larger pay-out than under the initial agreement, which included a $1.5 billion contribution from the Caesars Entertainment parent company.
However, the plan was widely opposed by creditors, who are collectively owed $18.4 billion, alleging that Caesars Entertainment had put many of its key hotel-casino facilities beyond the reach of creditors, although the company has denied this.
Bloomberg added that Caesars give creditors as much as 47.5% of stock in the reorganised company, as well as $406 million in cash, $1 billion in convertible notes and a discount on rights to purchase $500 million in stock.
Speaking on behalf of Caesars, lawyer David Seligman this week told a Chicago bankruptcy court: “In terms of recoveries to creditors, they are substantially improved down the line.”
The proposal comes after The Wall Street Journal newspaper earlier this week reported that Caesars is considering selling off its interactive gaming arm after it received offers of $4 billion for the business.
Groups said to be interested in acquiring the Caesars Interactive Entertainment (CIE) division include financial companies as well as businesses in the gaming, media and entertainment industries.
Related article: Caesars may sell off interactive division – report