Caesars improves restructuring offer but junior creditors appear unimpressed

Struggling casino operator Caesars Entertainment Corp (CEC) has amended the restructuring plan for its bankrupt main unit by promising creditors an extra $2.5b.

For over a year now, CEC has been attempting to convince creditors to agree to the restructuring of Caesars Entertainment Operating Co (CEOC), which listed $18.4b in debt when it filed for Chapter 11 protection in January 2015.

CEC had proposed a restructuring that would have cut $10b off CEOC’s debt, but junior creditors weren’t buying what CEC was selling, convinced that their lawsuits over CEC’s controversial pre-bankruptcy asset transfers would force CEC to make things right.

On Wednesday, CEC amended its restructuring plan, promising to contribute $4b to the plan, $2.5b more than the parent company had originally offered, but still less than the $5.1b legal liability that an independent examiner has concluded CEC could face due to those asset transfers and other fiscal shenanigans.