EFTA01786476.pdf

From: Nicholas Ribis < Sent: Wednesday, December 7, 2016 4:23 PM To: jeffrey E. Subject: Caesars =or ur info Caesars bankrup=cy deal in jeopardy Photo by ReutersThe High Roller ride at Caesars Entertainment's Ling project in Las Vegas. (Reuters)—The bank lenders of Caesars Ent=rtainment Corp.'s operating unit said they might walk away from a plan to =ring the casino unit out of its $18 billion bankruptcy, potentially sendin= a high-stakes reorganization plan into disarray. The committee of bank lenders, which includes B=ackstone Group LP's Capital Partners, has yet to resolve a dispute over th= terms of their recovery, their lawyer Kristopher Hansen said at a hearing=in U.S. Bankruptcy Court in Chicago on Tuesday. Hansen said the lenders would inform the court =n the status of a deal by Dec. 14, a month before a scheduled confirmation=trial in Caesars Entertainment Operating Co Inc's long-running bankruptcy =ase. Without a deal, Hansen said the committee would=terminate a restructuring support agreement, forcing the confirmation tria= to be postponed from Jan. 17. Bank lenders, which had been among the first to=back the unit's reorganization plan, say their support depends on document=tion that ensures the market value of the non-cash consideration they are =et to receive under the plan. Without the documentation, committee members said they would change their votes on=the plan. "Simply put, without the consent of the ba=k lenders, the plan completely unravels," they said in a Nov. 21 cour= filing. Caesars did not immediately comment. The unit filed for bankruptcy in January 2015 a=id creditors' allegations that its parent had looted it of choice assets s=ch as the Linq Hotel & Casino complex in Las Vegas. Caesars Entertainm=nt has denied the allegations. After more than a year of intense negotiations,=the vast majority of creditors have agreed to support a reorganization pla= that includes a $5 billion contribution from Caesars to settle their clai=s. Under the plan, the unit will split into a real estate investment trust controlled by lenders and a sepa=ate operating company that will form part of a new restructured Caesars co=trolled by creditors. Aside from bank lenders, the only other major o=jector to the reorganization plan is the U.S. Trustee, a bankruptcy watchd=g that opposes legal releases that the plan would grant to Caesars and its=private equity sponsors, Apollo Global Management LLC and TPG Capital Management LP. EFTA_R1_00109318 EFTA01786476 2 EFTA_R1_00109319 EFTA01786477