On Jan. 17, 2017, the U.S. Bankruptcy Court for the Northern District of Illinois confirmed the Chapter 11 plan of reorganization for Caesars Entertainment Operating Co. Inc. and its affiliated debtors, following more than two years of protracted bankruptcy proceedings, litigation and negotiations.
Kramer Levin played a pivotal role in the negotiations that formed the basis for Caesars’ 2015 bankruptcy filing, and has continued to represent holders of more than $3 billion in Caesars-issued first-lien notes — the largest and key creditor constituency — throughout these Chapter 11 cases, including in litigation surrounding the rights and claims of first-lien bondholders, mediation proceedings and plan negotiations that ultimately resulted in restructuring support agreements being signed by every major creditor constituency, and a fully consensual plan.
Pursuant to the confirmed plan of reorganization, Caesars’ gaming and hotel businesses will be separated into two companies: a real estate investment trust (REIT) to hold Caesars’ real estate assets, and an operating company to manage its gaming and hotel operations. Our clients will receive consideration in the form of cash, debt and equity securities that Caesars has valued at approximately 109 percent of its prepetition claim amounts. Post-confirmation, our lawyers will continue to work on the corporate, regulatory and organizational issues necessary to implement the restructuring.