(Recasts with renewed lender support for plan)
By Tracy Rucinski
CHICAGO Dec 23 Caesars Entertainment Corp's
bankrupt operating unit resolved a dispute with its
lenders on Friday, paving the way for a consensual plan to push
the casino group out of its $18 billion Chapter 11.
In filings with the U.S. Bankruptcy Court in Chicago, bank
lenders said they had reached an agreement over their recovery
terms and were withdrawing a threat to abandon a plan to end
Caesars Entertainment Operating Co Inc's two-year bankruptcy.
The lenders, which include Blackstone Group LP's GSO
Capital Partners, had set a Dec. 24 deadline for reaching a
deal, without which the unit's restructuring plan would have
Shares of Caesars Entertainment closed up 9.8 percent to
$7.85 on Friday. The company, formed through the 2008 buyout of
Harrah's, has warned that it would have to seek Chapter 11
protection itself without a timely organization of its operating
With the lenders' renewed support, the Caesars unit will
head into a January trial to confirm its bankruptcy exit with
the support of over 90 percent of creditors eligible to vote on
its reorganization plan.
The only major objector is the U.S. Trustee, a bankruptcy
watchdog that opposes legal protections granted under the plan
to Caesars and its private equity sponsors, Apollo Global
Management LLC and TPG Capital Management LP.
Caesars Entertainment agreed to pitch in $5 billion to the
unit's reorganization in exchange for releases from creditors'
claims that it looted the unit of choice assets such as the Linq
Hotel & Casino complex in Las Vegas prior to its bankruptcy.
Caesars has denied the allegations.
In a separate filing, Caesars said Gary Loveman would no
longer be employed by the company as of Dec. 31, but would
continue to serve as chairman of the board.
(Reporting by Tracy Rucinski; Editing by Richard Chang and