\nBloomberg) \u2014 Caesars Entertainment Corp.\u2019s operating unit amended a debt document so senior bondholders would get a lien on the casino operator\u2019s cash as it negotiates a restructuring of $18.3 billion of debt, according to a filing yesterday with the U.S. Securities and Exchange Commission.<\/p>\n
\tThe move may raise the odds that the Las Vegas-based company files for a bankruptcy as soon as mid-January. A transfer of assets, including a pledge on cash, would have to be done at least 90 days before a Chapter 11 filing.<\/p>\n
\t\u201cThe first-lien lenders want to protect themselves in bankruptcy,\u201d Chris Snow, a New York-based analyst at researcher CreditSights Inc., said in a telephone interview. By doing this, \u201cthe company is saying it needs to grant the liens on this cash in order to move\u201d debt talks \u201cforward,\u201d he said.<\/p>\n
\tGary Thompson, a spokesman at Caesars, declined to comment.<\/p>\n
\tWe \u201cdo not expect that our cash flow from operations will be sufficient to repay our indebtedness in the long-term and we will ultimately seek a refinancing, amendment, or restructuring of our debt,\u201d the company said in an Aug. 11 filing.<\/p>\n
\tCaesars\u2019 $4.5 billion of 10 percent, second-lien notes due December 2018 have $225 million in interest payments Dec. 15, a cash outlay other creditors don\u2019t want leaving the company. When a company misses an interest payment, it has a 30-day grace period before it\u2019s in default.<\/p>\n
\tThe casino operator is in discussions with first-lien bondholders Pacific Investment Management Co., Elliott Management Corp., Beach Point Capital Management LP, BlackRock Inc., Brigade Capital Management LLC, and JPMorgan Asset Management Inc., people with knowledge of the talks said last month.<\/p>\n
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