Caesars CEO Gary Loveman says their business shall not be held hostage by speculators.
The battle between Caesars Entertainment as well as its 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 wanting to impede the business’s efforts to restructure its financial obligation process, an activity that is essential to avoid bankruptcy.
Despite being the casino that is best-known 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 company announced a procedure for financial obligation restructuring, which, while not eliminating any long-term debt, 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 inspiration for both de-leveraging that is significant value creation at Caesars Entertainment.’
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‘Upon conclusion of the credit facility amendment … Caesars will have added headroom under its upkeep covenant, providing Caesars with additional stability to execute its business plan,’ he added. ‘If Caesars successfully lists its equity securities, this independent listing should help facilitate the eventual raising of equity as well as liability management and financial obl Continue reading Caesars at War with Investors Over $24 Billion Debt