Caesars Entertainment Corporation officials say they have reached an “amended restructuring support agreement” with top holders of the more than billion in long-term debt carried by its bankrupt largest unit, Caesars Entertainment Operating Company (CEOC). The debt is the bulk of Caesars Entertainment’s industry-high .8 billion in long-term debt.
The amended agreement reaffirms support of CEOC’s largest creditors, according to a report in the Las Vegas Review-Journal. The company officials did not reveal any amendments made to the original restructuring plan, which was negotiated over four months late last year with first-lien bondholders.
Caesars’ deal with top creditors would slash $10 billion of CEOC’s long-term debt. However, the company still needs to get a good portion of its second-lien bondholders—many of whom are plaintiffs in four lawsuits claiming the restructuring illegally closes them out—for the restructuring to be approved by U.S. Bankruptcy Judge Benjamin A. Goldgar, and for CEOC to emerge from bankruptcy.
The company announced in early July that it has come to an agreement with some of those second-lien creditors to grant equity in two new companies plus another $200 million worth of convertible notes in exchange for second-lien debt holders agreeing to the restructuring plan and dropping their claims against Caesars.
The company needs at least half of the second-lien debt holders to agree to the restructuring for it to go forward.
The ongoing bankruptcy saga did not hurt second-quarter revenues for Caesars Entertainment. The company reported that its net revenue increased 17.4 percent for the quarter, with net income of $15 million, or 10 cents per share, compared to a net loss a year ago.
“We are focused on growing the business, continually improving efficiency and expanding margins,” said Caesars Entertainment CEO Mark
Frissora, in his first earnings report since taking the CEO helm from Chairman Gary Loveman July 1. “These results demonstrate our ability to deliver growth while driving operational efficiencies.”