Caesars noteholder group objects to six-month exclusivity extension

By Kali Hays

New York, May 13 – An informal group of Caesars Entertainment Operating Co., Inc.’s first-lien noteholders and indenture trustee UMB Bank, NA objected to the company’s proposed six-month extension of its exclusive plan filing and solicitation periods on May 13, according to a filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

In April, Caesars asked the court to extend its plan filing period to Nov. 15, 2015 from May 15 and the solicitation period through Jan. 15, 2016 from July 14.

On May 6, the court extended the plan filing period to May 29 after the company’s official committee of unsecured creditors objected to the extension, claiming Caesars had failed to establish cause for any extension.

In its objection, the first-lien noteholders said that an “extension of exclusivity of some limited duration is warranted given the nature and complexity of these cases,” but that the requested six months is unnecessary.

Instead, the noteholders suggested a four-month extension in order to “promote an efficient resolution of these cases while still affording the necessary breathing room in which to build additional consensus on a plan of reorganization.”

An extension hearing is scheduled for May 27.

Caesars is a Las Vegas-based casino-entertainment company that filed for bankruptcy on Jan. 15. The Chapter 11 case number is 15-01145.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.