Apollo Global Management and TPG Capital will give up most of their stake in Caesars Entertainment to help it emerge from chapter 11 protection, the New York Times reported today. The complicated agreement, announced yesterday, settles a long-running battle between the private equity firms and a host of creditors. Under the terms of the deal, Apollo and TPG will hand over their $950 million stake in Caesars Entertainment’s parent company, which is publicly traded and not in bankruptcy protection. (They will retain a smaller stake in Caesars Entertainment through their holdings in another affiliate.) More senior creditors will also give up some of what they are owed. Over all, creditors will own 70 percent of Caesars when it emerges from chapter 11 protection. Shareholders in the still-public parent company will own 6 percent in the newly reorganized company.
