Caesars gets notice of default from bond holders

LAS VEGAS -- Caesars Entertainment Corporation said it received a notice of default from a group of bond holders over a portion of the company’s $24.2 billion debt.

In a filing with the Securities and Exchange commission last week, Caesars said it received the default notice from Wilmington Savings Fund Society, which represents second-lien holders covering $3.7 billion of the company’s debt.

“(Caesars) is in the process of reviewing the notice and intends to take required action, if any, within the 60-day period after delivery of the notice to the extent required to avoid any event of default under the indenture,” the company said in the filing.

Last month, Caesars said it was in discussions with its senior bond holders in efforts to restructure the largest portions of the company’s gaming industry-high debt.

Caesars said in an SEC filing it had a “non-disclosure agreements with certain beneficial holders” to discuss restructuring debt due in 2020. The companies have agreed to enter confidentiality agreements with Caesars to formally begin talks.

In an interview with the Las Vegas Review-Journal in Atlantic City last month, Caesars Entertainment Chairman Gary Loveman said the company “had made progress” with its unsecured creditors and talks with the first lien holders “was an important step” in moving forward with healing the company’s balance sheet.

Loveman was encouraged the company would talk directly with the bond holders and not advisers.

“I believe constructive discussions will occur,” Loveman said. “Our aim is to get something resolved in the next few weeks.”