Troubled Caesars Entertainment, America’s largest casino chain, is in talks with its senior creditors to restructure it massive debt load, the New York Post reported yesterday. The talks are likely aimed at reaching a deal that would give the senior debt-holders positions in the two newly created pieces of Caesars that hold the most promising assets, including its online gaming business. Caesars owes its junior creditors, including David Tepper’s Appaloosa Management, $400 million as of December. While it can make the payment, Caesars might want to finish the debt restructuring beforehand so that it does not give that $400 million to those particular creditors but rather to senior creditors who support the restructuring. At the same time, the company is trying to move control of its profitable rewards program out of the brick-and-mortar side of the business. Caesars operates more than 50 casinos under the Bally’s, Caesars, Harrah’s and Horseshoe brands.
