The U.S. Bankruptcy Court issued an order approving Caesars Entertainment Operating Company’s motion to repay certain first lien note obligations and make a cash distribution to holders of secured first lien notes claims to pay down $103.5 million in principal amounts outstanding under the first lien notes indentures.
As previously reported, “The Bond RSA, which solidifies this support, is a comprehensive compromise between the Debtors, CEC, and the First Lien Noteholders. For their part, the Debtors agreed touse good-faith efforts to seek authority to repay, in cash, $103.5 million of the principal amount outstanding under the First Lien Notes Indentures. Because of the First Lien Noteholders’ oversecured position in the Debtors’ capital structure, the Debtors otherwise would be required to re-pay these amounts eventually, whether pursuant to a chapter 11 plan, in a chapter 7 liquidation, or otherwise.”
Court-filed documents continue, “Any such repayments, if paid, would reduce dollar-for-dollar the amounts owed on account of the Secured First Lien Notes Claims under the Amended Plan (or any other chapter 11 plan), and such amounts would reduce any postpetition interest accruing on such amounts. Until such payments are made, interest continues to accrue on the full $6.35 billion principal amount outstanding under the first lien notes (the ‘First Lien Notes’), increasing the amount owed on account of the First Lien Notes.”
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