Caesars CEO Gary Loveman says his business shall 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’re trying to impede the business’s efforts to restructure its debt process, a process that is necessary to avoid bankruptcy.
Despite being the casino that is best-known in the world, Caesars’ long-lasting debt 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 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 procedure, according to Caesars Chairman and CEO Gary Loveman, would ‘lay the building blocks 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 maintenance covenant, providing Caesars with additional security to execute its business plan,’ he added. ‘If Caesars successfully lists its equity securities, this separate listing should help facilitate the eventual raising of equity in addition to liability management and financial obligation reduction initiatives.’
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