Creditors of Caesars Entertainment Operating Company (CEOC), the largest operating unit of Caesars Entertainment, filed objections after CEOC requested a six-month extension of the deadline for filing a complete restructuring plan with the U.S. Bankruptcy Court.
CEOC requested the deadline to be extended from May 15 to November 15 to file a restructuring plan in its bankruptcy case, citing the complexities involved in the case. Second-lien creditors, who were not part of the negotiations leading to the restructuring plan, have seen the move as another in a long line of actions designed to block them from recovering their investments.
“The evidence will show that the debtors have conducted themselves in this case just as they did prior to bankruptcy—with the illicit objective of enriching their controlling shareholder at the expense of unsecured creditors,” said the filing by the official committee of second-priority noteholders.
However, objections to the extension request came not only from the lower-level lienholders, but from the top-lien creditors who agreed to the terms of the restructuring, which would eliminated $10 billion of CEOC’s $18 billion in debt.
