Caesars Entertainment and its subsidiary Caesars Entertainment Operating Corporation (CEOC) said they would begin negotiations with bank creditors to correct some of the casino operator’s debt.
Caesars said in a statement on Friday that the two companies have entered into a non-disclosure agreement with certain beneficial debt holders issued by CEOC, including senior secured term loans, allowing them to “initiate formal discussions with bank lenders.”
The consolidated company’s long-term debt rose to $24.2 billion at the end of June from $20.9 billion in December, according to industry analysts.
Caesars is a major casino operator in the United States, but it has long operated its operations in Asia. Caesars is a joint venture of a planned casino resort in Incheon, South Korea. It aims to open the first phase by 2018.
“This most recent significant step further reflects our commitment to working constructively with creditors to leverage CEOC and create a path toward a sustainable capital structure that is in the best interests of all stakeholders,” said Gary Loveman, Chief Executive Officer of Caesars Entertainment. Loveman is also president of CEOC.
The move follows a similar announcement last month that the Las Vegas-based company said it was in discussions with senior bondholders to restructure most of its debt.
Earlier this month, the casino operator said it had received a default notice from a group of secondary lien holders covering $3.7 billion of the company’s debt. 슬롯사이트
In August, the company announced that it would reduce CEOC’s debt by $548 million and reduce interest expenses by $34 million annually.
However, games analyst Alex Boumazni of Fitch Ratings Services told the Las Vegas Review-Journal that Caesars was “likely” to have to deal with the issue through bankruptcy. Boumazni reportedly said the talks were “too many stakeholders” to succeed.