Caesars reaches legal deal with holdout junior creditor

The casino operator reached a deal with its last remaining bondholder.

US.- Trilogy Capital Management was the last remaining bondholder that was blocking Caesar’s proposed restructuring. The two companies signed a legal deal that supports the restructuring of Caesar’s bankrupt unit, which still needs approval from the federal bankruptcy watchdog.

Trilogy held US$9.4 million of Caesars Entertainment Operating Co’s (CEOC) debt of US$18.4 billion. The deal took almost two years to negotiate and it wasn’t revealed how much money was involved in it. Convincing Trilogy to get on board was one of the final steps of Caesar’s path to restructuring, and now the company is in talks with the National Retirement Fund over CEOC workers pensions.

A Caesars spokesperson said that they’re working on the subject and that they’re planning to resolve this issue as soon as possible. Denise Delaurent, US Trustee attorney, said: “From the department’s perspective, even if (the companies) reach an agreement, it might still violate the law.”