Report: Senior Lenders Walk Out On Caesars Entertainment Corp

Caesars Entertainment Corp.

shares tumbled nearly 12 percent Friday on a report that senior lenders walked out of talks on restructuring the company's bank loans. The action throws into doubt a preliminary restructuring agreement with Caesars' bond holders, according to unnamed sources cited by Bloomberg. http://www.bloomberg.com/news/2014-12-12/caesars-lenders-reveal-bankruptcy-plan-as-they-exit-talks.html The company had been on track for a Chapter 11 Bankruptcy protection by Jan 15 for its Caesars Entertainment Operating Co., Bloomberg said. Whether it proceeds without the blessing of senior lenders is uncertain, according to the report. Separately, the company is set to default on a a $224 million interest payment to bondholders, according to a report Thursday in the Las Vegas Review-Journal. http://www.reviewjournal.com/business/casinos-gaming/caesars-expected-miss-224-million-interest-payment Fitch Ratings analyst Alex Bumazhny said 80 percent of the first-lien debt would be recovered in a bankruptcy along with 10 percent of second-tier debt, the newspaper said. Caesars shares area down more than 38 percent in the year to date and traded recently at $13.14, down $1.72.