Caesars Entertainment Operating Co. (CEOC) has broadened the support for its $18 billion debt-restructuring plan, adding certain junior bondholders to the list of top creditors that have pledged to back the proposal, the Wall Street Journal reported today. CEOC said yesterday that holders of about 37 percent of its $5.2 billion in second-lien bond debt have signed a restructuring support agreement with the bankrupt casino operator and its corporate parent, which isn’t in chapter 11. CEOC has previously reached similar deals with its parent, senior bank lenders, senior bondholders and unsecured creditors. For the restructuring support agreement with the second-lien bondholders to take effect, CEOC said it must secure the support of creditors holding more than 50.1 percent of that debt. A prior support agreement with a minority of second-lien bondholders crumbled last year when CEOC couldn’t meet that threshold. Other holders of second-lien bond debt have been vocal opponents of CEOC’s restructuring, although CEOC said that it will continue to work toward a consensual plan.
