The operating unit of Caesars Entertainment Corp, the largest U.S. casino company, filed for Chapter 11 bankruptcy on Thursday to implement its plan to cut $10 billion of debt, but faced an immediate challenge over where the case should proceed. The company said it has the support of its senior noteholders to implement the plan, which will reduce the operating unit's debt to $8.6 billion from $18.4 billion. Much of the debt is a legacy of the $30 billion leveraged buyout of Harrah's Entertainment that was led by Apollo Global Management and TPG Capital in 2008. Leading the opposition are deep-pocketed hedge funds Appaloosa Management and Oaktree Capital Management. They are among the holders of the $5 billion in junior notes that stand to recover less than 10 percent of what they are owed. http://yhoo.it/1yoe0EF http://bit.ly/1fJ5yqZ
Caesars' Operating Unit Files for Bankruptcy, but Venue Unclear
The operating unit of Caesars Entertainment Corp, the largest U.S. casino company, filed for Chapter 11 bankruptcy on Thursday to implement its plan to cut $10 billion of debt, but faced an immediate challenge over where the case should proceed. The company said it has the support of its senior noteholders to implement the plan, which will reduce the operating unit's debt to $8.6 billion from $18.4 billion. Much of the debt is a legacy of the $30 billion leveraged buyout of Harrah's Entertainment that was led by Apollo Global Management and TPG Capital in 2008. Leading the opposition are deep-pocketed hedge funds Appaloosa Management and Oaktree Capital Management. They are among the holders of the $5 billion in junior notes that stand to recover less than 10 percent of what they are owed. http://yhoo.it/1yoe0EF http://bit.ly/1fJ5yqZ
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