Caesars CEO Gary Loveman says their business will perhaps not be held hostage by speculators.
The battle between Caesars Entertainment and its bondholders was ramped up a notch this week as the casino giant filed a lawsuit against a large portion of its investors, claiming they have been trying to impede the company’s efforts to restructure its financial obligation process, a procedure that is essential to avoid bankruptcy.
Despite being the best-known casino company in the world, Caesars’ long-lasting 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 means of debt 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 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 upkeep covenant, providing Caesars with additional security to execute its company plan,’ he added. ‘If Caesars successfully lists its equity securities, this listing that is independent help facilitate the eventual raising of equity as well as liability administration and financial obligation decrease initiativ Continue reading “Caesars at War with Investors Over $24 Billion Debt”