Representatives of a group of bondholders that own debt in a division of US operator Caesars Entertainment Corporation have begun talks over restructuring its borrowings, according to the Bloomberg news agency.
The investors own portions of Caesars’ $6.35 billion (€4.74 billion) of first-lien bonds.
Investment bank Miller Buckfire & Co. and law firm Kramer Levin Naftalis & Frankel LLP have signed confidentiality agreements allowing them to see sensitive information as they seek a deal, the report said.
Caesars could be moving towards a possible restructuring of $19 billion of debt at its operating company.
The unit in question hired law firm Kirkland & Ellis in July to provide advice regarding a possible restructuring, with Blackstone Group working as the parent company’s adviser.
Caesars was taken private by Apollo Global Management and TPG Capital in 2008, since when the company has only had one profitable year. Bloomberg said that the company took on $30.7 billion of debt through the buy-out, with the Caesars now having $21 billion of long-term borrowings.