Struggling casino operator Caesars Entertainment Corp (CEC) has amended the restructuring plan for its bankrupt main unit by promising creditors an extra $2.5b.
For over a year now, CEC has been attempting to convince creditors to agree to the restructuring of Caesars Entertainment Operating Co (CEOC), which listed $18.4b in debt when it filed for Chapter 11 protection in January 2015.
CEC had proposed a restructuring that would have cut $10b off CEOC’s debt, but junior creditors weren’t buying what CEC was selling, convinced that their lawsuits over CEC’s controversial pre-bankruptcy asset transfers would force CEC to make things right.
On Wednesday, CEC amended its restructuring plan, promising to contribute $4b to the plan, $2.5b more than the parent company had originally offered, but still less than the $5.1b legal liability that an independent examiner has concluded CEC could face due to those asset transfers and other fiscal shenanigans.