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