Caesars CEO Gary Loveman says his business shall 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 part of its investors, claiming they’ve been attempting to impede the business’s efforts to restructure its debt process, an activity that is important to avoid bankruptcy.
Despite being the best-known casino business 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 organization announced a means 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 process, according to Caesars Chairman and CEO Gary Loveman, would ‘lay the inspiration for both de-leveraging that is significant value creation at Caesars Entertainment.’
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‘Upon conclusion of the credit facility amendment … Caesars will have added headroom under its maintenance 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 liability administration and debt reduction initiatives.’