Caesars Entertainment Corp. has offered $4 billion in a new plan to help its casino operating unit emerge from chapter 11, a lawyer for the unit told a bankruptcy judge yesterday, Reuters reported. Under the new plan, creditors will receive a bigger payout than under an initial framework restructuring agreement, which included a contribution from the Caesars Entertainment parent worth $1.5 billion. The initial agreement was widely opposed by creditors of the bankrupt unit, who are owed a collective $18.4 billion. They alleged that the parent, Caesars Entertainment, stripped away many of the best casinos and resorts and put them beyond the reach of the operating unit's creditors, something the parent has denied. "In terms of recoveries to creditors, they are substantially improved down the line" under the new plan, lawyer David Seligman said yesterday in bankruptcy court on behalf of the Caesars unit. Under Wednesday's proposal, once Caesars Entertainment completes its previously announced merger with its affiliate, Caesars Acquisition Co., the combined company will issue $1 billion of convertible notes to the operating unit's creditors. Creditors will also receive up to 47.5 percent of the common stock in the post-merger Caesars Entertainment and cash, valuing the entire contribution from the parent at $4 billion.
