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Monday, January 12, 2015

Caesars junior creditors file involuntary bankruptcy petition, (NASDAQ: CZR)

A group of second-lien bondholders of casino operator Caesars Entertainment Corp filed a petition for involuntary Chapter 11 bankruptcy protection against the company's largest unit after it defaulted on interest payments. Caesars Entertainment Operating Co Inc defaulted on $225 million of payments due on Dec. 15.The petitioning group includes hedge funds Appaloosa Investment Limited Partnership I and OCM Opportunities Fund VI LP, according to the petition filed on Monday.The payments were due on principal of $4.5 billion.The company elected not to pay the interest though it had about $1.5 billion of cash and cash equivalents and said it was taking advantage of a grace period, the bondholders said.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR fell by 3.62% or $-0.5/share to $13.33. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1640770 shares of CZR exchange hands on a given day and today's volume is recorded at 29098.