A bankrupt investment vehicle formed by Silver Point Capital LP to fund an expansion of the Studio City resort and casino in Macau is in talks on a potential settlement with disgruntled bondholders to allow for restructuring about $856 million in debt, WSJ Pro Bankruptcy reported. Advisers for the U.S.-based investment vehicle, New Cotai Holdings LLC, and a group of investors that hold its bond debt have recently exchanged proposals on a potential chapter 11 plan of reorganization, according to papers the debtor filed on Thursday in the U.S. Bankruptcy Court in White Plains, N.Y. The “parties have made significant headway towards a consensual deal,” New Cotai said. Settlement discussions have progressed, New Cotai said, after the bondholders requested a pause in an investigation led by law firm DLA Piper related to Studio City’s 2018 initial public offering. The value of the New Cotai bonds plummeted in the months following the IPO, according to court papers filed last summer by the bondholder group.
