With debt-laden gaming giant caesars widely expected to undergo restructuring, current bondholders may see their future negotiating power being seriously weakened. The corporate parent's guarantee behind bonds issued by the opco, caesars entertainment operating company (CEOC), is expected to be removed under a credit agreement amendment. Analysts say this would significantly weaken the position of current bondholders when CEOC, which is groaning under some US$18bn in debt, heads to restructuring. "If the opco is restructured, there would have to be an agreement with the bondholders to do so," Andrey Kuznetsov, a credit analyst at Hermes, told IFR. "By removing the guarantee, bondholders will not only have less leverage at the negotiating table, [they] will also probably get a lower recovery on their bonds."
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