Caesars unit’s bankruptcy deal in jeopardy
By Tracy Rucinski, Reuters
The bank lenders of Caesars Entertainment Corp.’s operating unit said they might walk away from a plan to bring the casino unit out of its $18 billion bankruptcy, potentially sending a high-stakes reorganization plan into disarray.
The committee of bank lenders, which includes Blackstone Group LP’s GSO Capital Partners, has yet to resolve a dispute over the terms of their recovery, their lawyer Kristopher Hansen said at a hearing in U.S. Bankruptcy Court in Chicago on Tuesday.
Hansen said the lenders would inform the court on the status of a deal by Dec. 14, a month before a scheduled confirmation trial in Caesars Entertainment Operating Co Inc’s long-running bankruptcy case.
Caesars is the parent company of Harrah’s Lake Tahoe and Harveys.