Caesars CEO Gary Loveman says his business shall perhaps not be held hostage by speculators.
The battle between Caesars Entertainment and its bondholders was ramped up a notch this week as the casino giant filed a lawsuit against a large percentage of its investors, claiming they’re trying to impede the company’s efforts to restructure its financial obligation process, a process that is necessary to avoid bankruptcy.
Despite being the best-known casino business in the world, Caesars’ long-term debt is colossal, standing at an industry all-time high of $23 billion, which outstrips the bankrupt city of Detroit. In May, the company announced a process of debt restructuring, which, while not eliminating any debt that is long-term would wipe out more than $1 billion of payments due in 2015.
The process, according to Caesars Chairman and CEO Gary Loveman, would ‘lay the inspiration for both significant de-leveraging and value creation at Caesars Entertainment.’
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‘Upon conclusion of the credit facility amendment … Caesars will have added headroom under its upkeep covenant, providing Caesars with additional security to execute its company plan,’ he added. ‘If Caesars successfully lists its equity securities, this listing that is independent help facilitate the eventual raising of equity along with liability management and financial obligation decrease initiatives.’