In Caesars Bankruptcy Fight, Private Equity Owners Fold


Caesars may be defeated, but borrowers reign supreme.

Efforts by Caesars Entertainment’s private equity owners, Apollo Global Management and TPG Capital, to salvage something from their $30 billion casino buyout largely failed after creditors fought back. Under terms of a new deal, junior creditors would recover 66 cents on the dollar if a bankruptcy court approves. Most debt investors around the world are bowing to lame terms, however, meaning Caesars probably will be an exception.

The acquisition of the company, formerly called Harrah’s Entertainment, in 2008 got into early trouble as a flagging economy left the indebted company struggling. Refinancing, selling equity in public markets and cost-cutting helped up to a point, but the operating company was forced to seek bankruptcy last year. Along the way, Apollo and TPG moved assets around in a way that irritated creditors…

In Caesars Bankruptcy Fight, Private Equity Owners Fold

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