The U.S. Bankruptcy Court issued an order approving Caesars Entertainment Operating Company’s motion to approve compromise or settlement by and among, among others, the Debtors, Caesars Entertainment Corporation (CEC) and the National Retirement Fund Parties (NRF).
As previously reported, “Pursuant to the Settlement Agreement, the Employers retroactively will be restored to the Legacy Plan of the NRF as of the date of their expulsion from such plan, the NRF will withdraw its claim for more than $360 million of withdrawal liability against each of the Debtors, each of the other Caesars Parties, and each member of the Controlled Group and the NRF Parties have agreed to not assert claims against the Released Caesars Parties related to the creation of the real estate investment trust or the other transactions contemplated by the Debtors’ plan of reorganization….In short, the Settlement Agreement generally returns the relationship between the NRF Parties and the Caesars Parties to the prepetition status quo. Under the Settlement Agreement, on the effective date of the Plan, CEC will make payments equal to $45 million (the ‘Caesars Payments’). The Debtors will not pay any portion of this amount….On the Effective Date, CEC will make an aggregate payment of $45 million to the NRF, which includes: $10 million Settlement Payment; $5 million Fee Payment; $15 million Contribution Payment; and $15 million Withdrawal Payment….The Legacy Plan shall offset the Employers’ required monthly Contributions in each calendar year against the Contribution Balance such that the Employers shall collectively have a credit in the aggregate amount of $8,000,000 per year against their required contributions to the Legacy Plan for such calendar year. The Employers shall be obligated to pay to the Legacy Plan (on a monthly basis) in the credited year the aggregate amount of the Employers’ collective contributions due and owing in excess of $8,000,000.”
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