A court filing showed yesterday that hedge fund Trilogy Capital Management, the last holdout bondholder of Caesars Entertainment Corp.’s bankrupt operating unit, has agreed to support the casino group's restructuring and halt litigation, Reuters reported. The agreement removes the threat of a judgment against Caesars, which was facing lawsuits by hedge funds (including Trilogy) over guarantees on its operating unit's bonds. While Trilogy's claim was small at $9.4 million, a judgment could have blown up a crucial $5 billion restructuring deal that Caesars reached last month with creditors to resolve billions of dollars of potential lawsuits. In a filing with the U.S. district court in Chicago, Trilogy and the Caesars parties said that they had reached a consensual resolution of their dispute and asked the court to strike a hearing on the matter that had been scheduled for December. Trilogy and Caesars declined to provide details of the agreement.
