CHICAGO (Reuters) - Bank lenders of Caesars Entertainment Corp’s (CZR.O) 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) 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