Caesars Entertainment Operating Company’s official committee of second priority noteholders filed with the U.S. Bankruptcy Court a stipulation regarding Caesars Interactive Entertainment (CIE) sale proceeds.
The motion explains, “On August 1, 2016, CAC announced that, on July 30, 2016, CIE entered into a Stock Purchase Agreement to sell CIE’s social and mobile gaming business to a consortium of Chinese entities for $4.4 billion in cash as set forth in the Purchase Agreement (the ‘CIE Sale’). On August 9, 2016, the Debtors filed a Complaint against, among others, CIE, CAC, and Caesars Entertainment Corporation (CEC) asserting claims for avoidance of fraudulent transfer, breach of fiduciary duty, and related claims.”
The motion continues, “CIE shall not directly or indirectly distribute any proceeds of the CIE Sale to or for the benefit of any Minority Equity Holder unless and until such Minority Equity Holder has executed and returned an agreement containing a waiver, or as may be agreed by the Noteholder Committee in writing. CAC or CIE shall provide copies of each executed Waiver to the Debtors and the Noteholder Committee within 48 hours of receipt from such Minority Equity Holder. The Noteholder Committee shall not seek standing to, or otherwise seek to, enjoin or otherwise interfere with or seek to block the CIE Sale or the distribution of proceeds of the CIE Sale (i) for the payment of CIE Transaction Expenses or Tax Amounts or (ii) for the benefit of any Minority Equity Holder who has executed and returned a Waiver.”
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