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The Caesars Palace hotel-casino in Las Vegas. Caesars Entertainment officials say an early proposal to restructure company finances would have converted its debt-heavy division into a real estate investment trust.
NEW YORK >> Caesars Entertainment Corp., which is in the midst of trying to cut its debt, disclosed Monday that it received a default notice from one of its banks. But the casino operator said the notice was "meritless."
In a Securities and Exchange Commission filing, Caesars said that it received a default notice Friday from UMB Bank related to its senior secured notes. The default notice was for its operating unit Caesars Entertainment Operating Co., which said it "does not believe that a default or an event of default has occurred."
A spokeswoman for UMB said the bank is a trustee of Caesars’ senior secured notes, and that the bank was told to send the default notice by the note holders. UMB said it could not disclose who the note holders are and declined to comment further.
Last month, Las Vegas-based Caesars said it was in discussions with its creditors in order to lower its $24.2 billion of debt. The company has been trying to restructure its finances.
The company owns the Caesars, Harrah’s, and Horseshoe brands.
Caesars shares rose 6 cents to $16.08 in afternoon trading. Its shares are down 10 percent over the past year.
