Apollo Global Management LLC, one of the owners of Caesars Entertainment Corp., received an ultimatum from creditors who are the staunchest opponents of the casino operator’s bankruptcy plan, demanding that the private-equity firm surrender control of the still-solvent parent company to them, Bloomberg News reported yesterday. The opponents, junior bondholders of Caesars’ bankrupt unit, made their demand in a meeting this month. Through the parent, creditors would then take charge of several profitable units outside of the bankruptcy case. In exchange, the creditor group would withdraw the pile of lawsuits it has filed related to the bankruptcy. Apollo rejected the offer, but the two sides are continuing negotiations. The second-lien group includes Appaloosa Management, Oaktree Capital Group LLC and Tennenbaum Capital Partners, according to a February court filing.
