Caesars Entertainment (CZR), CEOC Enter RSAs with Major Creditor Groups

October 5, 2016 11:16 AM EDT

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Caesars Entertainment Corporation (Nasdaq: CZR) and Caesars Entertainment Operating Company, Inc. ("CEOC") and its Chapter 11 debtor subsidiaries (collectively, the "Debtors") have entered into, or amended and restated, Restructuring Support Agreements ("RSAs") with the representatives of all of CEOC's major creditor groups and agreed to the terms of the Debtors' Third Amended Joint Plan of Reorganization (the "CEOC Plan"). The RSAs represent a key milestone in Caesars Entertainment and CEOC's effort to implement a consensual restructuring for the Debtors. Today's announcement paves the way toward a confirmable plan for the Debtors and a successful conclusion to CEOC's bankruptcy proceedings in 2017.

The RSAs with the First Lien Bank Lenders, First Lien Noteholders, Second Lien Noteholders and holders of Subsidiary Guarantee Notes are effective immediately. The key economic terms of the RSAs are substantially similar to the previously announced term sheet. The RSAs are subject to termination in certain circumstances, including, but not limited to, should the injunction in respect of the guaranty litigation against Caesars Entertainment no longer be in place and if the CEOC Plan has not gone effective before a certain date in 2017. In addition, the RSA with First Lien Noteholders will terminate automatically on October 14, 2016, unless, prior thereto, the parties have reached an agreement on certain additional documentation in connection with the CEOC Plan. The guaranty litigation pending against Caesars Entertainment was stayed today through the earliest of (a) the first omnibus hearing after the court confirms or denies the CEOC Plan, (b) the termination of the Second Lien RSA and (c) a further order of the court, in a hearing in the United States Bankruptcy Court for the Northern District of Illinois in Chicago.

Details on the RSAs can be found in the Form 8-K that will be filed with the Securities and Exchange Commission and will also be available in the Media Resources section of the CEOC Restructuring Website at

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