Paulson & Co. is among the creditors closing in on a deal intended to salvage a bankruptcy plan that Caesars Entertainment Corp. is pushing to restructure its insolvent operating unit, Bloomberg News reported yesterday. The hedge-fund firm controlled by billionaire John Paulson along with other junior debt holders of Caesars Entertainment Operating Co. including Canyon Partners and Soros Fund Management are discussing the plan with the casino company. The deal would extract better terms for the creditors than a previous version that has failed to gather enough support. Caesars has tried for months to line up enough senior creditors to win approval of a proposal to cut lower-ranking debt, allow the parent to retain a stake in the operating unit and halt related lawsuits against its private-equity owners, Apollo Global Management and TPG Capital Management. The company, the largest owner of casinos in the U.S., pushed its biggest subsidiary into bankruptcy in January to restructure $19.9 billion of borrowings.
