Caesars Entertainment Operating Company filed with the U.S. Bankruptcy Court a motion to approve a compromise and settlement agreement by and among Caesars Entertainment Operating Company (CEOC), Caesars Entertainment Corporation (CEC) and designate insurers under certain management liability insurance policies (collectively, “Settling Insurers”) concerning the resolution and release of certain claims covered under certain policies.
The motion explains, “The Settlement Agreement between Caesars and the Settling Insurers resolves a multiparty dispute concerning $140 million in coverage under Caesars’ director and officer insurance policy arrangement. Pursuant to the Settlement Agreement, the Settling Insurers have agreed to pay, in cash, 90 percent of the contracted-for coverage amounts under the respective policies. In exchange, Caesars has agreed to relieve the Settling Insurers from any further obligations to Caesars under the insurance policies. This $126 million cash settlement is a vital part of the Debtors’ confirmed plan of reorganization [Docket No. 6318] and underlies both the cash distributions to creditors and, because cash is fungible, the cash at Caesars that underlies the value of the equity being distributed to the Debtors’ creditors under the Plan. Thus, entry into and approval of the Settlement Agreement is a key milestone as the Debtors work towards emergence from bankruptcy protection. Accordingly, for these reasons and the reasons set forth herein, the Debtors submit that the Settlement Agreement is fair and reasonable to their estates and should be approved.”
The Court scheduled a September 13, 2017 hearing to consider the settlement, with objections due by September 6, 2017.
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