Advertisement

CEOC Bankruptcy Compromise Filed

Advertisement

Caesars Entertainment Operating Company (CEOC) filed with the U.S. Bankruptcy Court a motion to approve a compromise or settlement, per Rule 9019, between CEOC and the State of Mississippi.

The motion explains, “The ‘in lieu’ assessment payments claimed by Mississippi as administrative expense claims for years 2016, 2017, and 2018, in aggregate, amount to no less than $1,889,000….Subject to Mississippi successfully selling its remaining Allowed Claim as set forth in the Settlement Agreement, upon the Agreement Effective Date, in full and final satisfaction, settlement, and release of the Mississippi Claims: (a) Claim 5405 shall be allowed as a general unsecured claim in the amount of $3,020,000 (the ‘Allowed Claim’); (b) the Mississippi Claims other than Claim 5405 in its reduced amount (collectively, the ‘Expunged Claims’) shall be disallowed and expunged in their entirety; (c) the Debtors’ notice and claims agent shall be authorized to update the claims register to reflect such treatment; (d) the Allowed Claim shall be treated as a Class I Undisputed Unsecured Claim against CEOC in accordance with the terms set forth in the Plan; and (e) Mississippi shall not be entitled to an administrative expense claim for any claims. If the Allowed Claim is not sold by Mississippi or its broker for $1.975 million in cash on or prior to the effective date of the Plan or such later date as agreed on by the Parties, the Settlement Agreement shall be void ab initio, and the Mississippi Claims shall be reinstated as though the Settlement Agreement did not exist.”

In addition, “Moreover, the Settlement Agreement will reduce the aggregate amount of the Mississippi Claims by more than $23 million, thus benefiting other unsecured creditors at CEOC that will receive Plan recoveries from the same cash and security pools. This reduction in potential claims facilitates the Debtors’ efforts to satisfy the condition precedent in the Plan that the aggregate amount of allowed unsecured claims in Class I, Class J, Class K, and Class L will not exceed $350 million.”

The Court scheduled a September 27, 2017 hearing to consider the compromise, with objections due by September 20, 2017.

Read more CEOC bankruptcy news.