Certain First Lien Bank Lenders Of Caesars Entertainment Enter Into Amended And Restated Binding Agreement To Withhold Support For Restructuring Support Agreement

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Jan 20, 2015, 09:48 ET

NEW YORK, Jan. 20, 2015 /PRNewswire/ -- As previously announced, the members of an informal committee of certain beneficial holders (the "First Lien Bank Lender Committee") of first lien bank debt (the "First Lien Bank Debt") of Caesars Entertainment Operating Company, Inc. ("CEOC") entered into an agreement (the "Agreement"), pursuant to which each of them agreed, with respect to the First Lien Bank Debt of CEOC owned or controlled by them, to not support, consent to or approve the proposed restructuring transactions (the "Proposed Transactions") disclosed in Forms 8-K filed by Caesars Entertainment Corporation ("CEC") unless such Proposed Transactions are approved by the requisite supermajority of the parties to the Agreement. Since the Agreement was executed, certain other beneficial holders of First Lien Bank Debt have entered into the Agreement with the members of the First Lien Bank Lender Committee, such that the Agreement has been amended and restated and now has the support of over 56% of the aggregate principal amount of the First Lien Bank Debt. The Agreement ensures that CEC will be unable to obtain the requisite amount of consents from holders of the First Lien Bank Debt that would be necessary to eliminate CEC's guarantee obligations to such holders of all amounts, including, among others, all principal and interest, whether or not accruing after the commencement of CEOC's chapter 11 case.

The First Lien Bank Lender Committee is advised by Stroock & Stroock & Lavan LLP and Rothschild Inc.

SOURCE Stroock & Stroock & Lavan LLP