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CEOC Bankruptcy Settlement Approval Sought

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Caesars Entertainment Operating Company filed with the U.S. Bankruptcy Court a motion to approve a compromise or settlement between Debtor Caesars Palace Realty (CPRC) and Clark County.

The motion notes, “Clark County informed the Debtors that Clark County is seeking to refinance the Bonds that underlie the SID. Such refinancing will reduce the tax assessments that CPRC pays under the SID Financing Agreement. Specifically, based upon information received from Clark County’s financial advisors, and assuming market rates as of April 13, 2017 with a credit spread of 40 to 90 basis points, this refinancing would reduce CPRC’s assessment payments by a gross amount of approximately $2,500,000. CPRC and Clark County both believe that this refinancing will be beneficial.”

In addition, “Thus, to help effectuate the Bond refinancing, the parties wish to enter into the Stipulation, which provides that: Claim 5214 will be classified as a Class B Other Secured Claim for purposes of Plan treatment; Pursuant to Article III.B.2.b of the Plan, Debtor CPRC will reinstate Claim 5214 as an Allowed Other Secured Claim on the effective date of the Plan in accordance with the terms of the Plan and the Confirmation Order.” The Court scheduled a June 21, 2017 hearing to consider the settlement, with objections due by June 14, 2017.

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