CaesarsEntertainment Corp., Caesars Entertainment Operating Co. Inc. andits Chapter 11 debtor subsidiaries signed amended restructuring supportagreements with thebankrupt operatingunit's major creditor groups and agreed to the terms of the debtors'reorganization plan.
The restructuring support agreements with the first-lienbank lenders, first-lien noteholders, second-lien noteholders and holders ofsubsidiary guarantee notes went into effect immediately, subject to certaintermination conditions. The restructuring support agreements with first-liennoteholders will terminate automatically Oct. 14, subject to certain conditions.
The newly reached agreements clear the way toward aconfirmable plan for the debtors and a 2017 completion of Caesars EntertainmentOperating Co.'s bankruptcy proceedings, according to a release.
Under the revised restructuring plan, Caesars EntertainmentOperating Co. creditors will own about 70% of the new Caesars, while CaesarsAcquisition shareholders would own 24% and existing shareholders of CaesarsEntertainment would retain 6% of the equity.