Caesars CEO Gary Loveman says their business shall 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’ve been attempting 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-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 business announced a procedure of 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 foundation for both significant de-leveraging and value creation at Caesars Entertainment.’
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‘Upon completion 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 independent listing should help facilitate the eventual raising of equity in addition to obligation management and debt reduction initiatives.’
However, as Moo Continue reading