Caesars unit's bank lenders need more time to resolve dispute: lawyer

Wed Dec 14, 2016 3:20pm EST
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CHICAGO (Reuters) - Bank lenders of Caesars Entertainment Corp's (CZR.O: Quote) bankrupt operating unit need more time to resolve a dispute over the terms of their recovery, a lawyer said in court on Wednesday.

On Dec. 6, the committee of bank lenders, which includes Blackstone Group LP's (BX.N: Quote) GSO Capital Partners, threatened to walk away from the reorganization plan, absent documentation ensuring part of their recovery.

A lawyer for the bank lenders said the committee would tell the court on Monday whether it had reached a deal or would move to withdraw their support for the Caesars unit's so-called restructuring support agreement.

The lenders had set a Wednesday deadline for informing the court of a potential deal.

Without the support of bank lenders, a hard-fought deal to push Caesars Entertainment Operating Co Inc out of a two-year, $18 billion bankruptcy would fall apart.

(Reporting by Tracy Rucinski; editing by Grant McCool)

An evening view of the 550-foot-tall High Roller observation wheel after opening in Las Vegas, Nevada March 31, 2014. The observation wheel, the tallest in the world, is part of the Linq project, a $550 million development by Caesars Entertainment Corp. REUTERS/Las Vegas Sun/Steve Marcus