Casino operator Caesars Entertainment has reached a deal with the last remaining bondholder blocking the company’s interminably delayed proposed restructuring.
On Tuesday, Caesars announced that hedge fund Trilogy Capital Management had agreed to support the plan to restructure Caesar’s bankrupt main unit Caesars Entertainment Operating Co (CEOC). Neither firm saw fit to disclose what goodies Caesars dangled to convince Trilogy to flip its script.
Trilogy, which held only $9.4m of CEOC’s $18.4b of debt, had mounted a surprise last-minute assault on the deal Caesars had reached with its other junior creditors, a deal that had taken nearly two years to negotiate. Caesars was forced to extend its stated deadline last week to continue efforts to try to bring Trilogy on board.
The Trilogy deal now leaves just one more niggling obstacle to CEOC’s restructuring, which will see the company split into a casino management firm and a real estate investment trust, The company is still fighting with the National Retirement Fund over CEOC employee pensions, but Caesars bankruptcy lawyers claim they’re close to resolving this issue.