Caesars at War with Investors Over $24 Billion Debt
Caesars CEO Gary Loveman says their business will not be held hostage by speculators.
The battle between Caesars Entertainment and its own bondholders was ramped up a notch this week as the casino giant filed a lawsuit against a large portion of its investors, claiming they have been trying to impede the business’s efforts to restructure its debt process, a process that is important to avoid bankruptcy.
Despite being the best-known casino business in the world, Caesars’ long-lasting debt is colossal, standing at an industry all-time high of $23 billion, which outstrips the bankrupt city of Detroit. In-may, the organization announced a procedure of financial obligation restructuring, which, while not eliminating any long-term debt, would wipe out more than $1 billion of payments due in 2015.
The procedure, according to Caesars Chairman and CEO Gary Loveman, would ‘lay the inspiration for both significant de-leveraging and value creation at Caesars Entertainment.’
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‘Upon completion of the credit facility amendment … Caesars will have added headroom under its upkeep covenant, providing Caesars with additional stability to execute its company plan,’ he added. ‘If Caesars successfully lists its equity securities, this listing that is independent help facilitate the eventual raising of equity along with obligation administration and debt reduction initiatives.’
However, as Moody (more…)