Caesars Entertainment (CZR), CEOC Says Most of Major Creditors Support Term Sheet
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Caesars Entertainment Operating Company, Inc. ("CEOC") and its Chapter 11 debtor subsidiaries (collectively, the "Debtors") today provided the Bankruptcy Court with a report on the term sheet that has been proposed to provide the basis for a revised plan of reorganization for the Debtors (the "Revised Plan of Reorganization").
Caesars Entertainment Corporation (NASDAQ: CZR) ("Caesars Entertainment") and representatives of most of CEOC's major creditor groups have confirmed their support for the term sheet. The term sheet provides that the parties will negotiate definitive support agreements and the Revised Plan of Reorganization in good faith through the close of business on September 30th, a process which could extend beyond such date. CEOC reported that the parties are working diligently on those documents, and advised the Bankruptcy Court that a further hearing may be necessary to address whether any proposed adjustments to the plan confirmation timetable are warranted if the definitive support agreements are agreed to and executed and the Revised Plan of Reorganization is agreed to and filed.
Also today, the Bankruptcy Court scheduled a hearing for October 4th to consider a request that the Debtors intend to make for a stay of certain litigation pending against Caesars Entertainment. That litigation is presently stayed through October 5th. Assuming a Revised Plan of Reorganization is agreed upon and definitive support agreements are entered into, it is expected that most of CEOC's major creditor groups will support the anticipated stay request. In addition, an appeal of the Bankruptcy Court's previous denial of a requested stay of such litigation is scheduled for argument on October 5th in the United States District Court for the Northern District of Illinois. If the Bankruptcy Court does not grant CEOC's request for a stay on October 4th, and subsequently, CEOC is unsuccessful in its appeal on October 5th, such litigation would resume. Summary judgment hearings in such litigation are scheduled in United States District Court for the Southern District of New York on October 6th, and in Delaware Chancery Court on October 7th. Further information regarding such litigation can be found in Caesars Entertainment's SEC filings.
The Revised Plan of Reorganization, if agreed and filed with the Bankruptcy Court, will be subject to a formal creditor vote and confirmation by the Bankruptcy Court. The completion of CEOC's restructuring under the Revised Plan of Reorganization will be subject to numerous conditions, including regulatory approval, completion of definitive documentation implementing the Revised Plan of Reorganization and consummation of the merger between Caesars Entertainment and Caesars Acquisition Company (Nasdaq: CACQ).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Basic Energy Services (BAS) to File for Chapter 11 Bankruptcy; Enters RSA with Certain Lenders, Noteholders
- Caesars Entertainment (CZR), CEOC Extend Deadline to Reach Agreement on Documentation with First-Lien Noteholders
- Global Blood Therapeutics (GBT) Chief Medical Officer Ramos Retired
Create E-mail Alert Related CategoriesCorporate News, Litigation
Related EntitiesBankruptcy, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!