Caesars denies another request from second-level bond holder

Caesars Entertainment Corp. is getting used to saying no.

For the second time in two weeks, the casino operator rejected a demand from an unsecured second level bondholder for payment of the obligations.

In a filing with the Securities and Exchange Commission Monday, Caesars said BOKF N.A. asked for payment on $750 million in debt plus interest. Caesars said it turned down the payment demand.

Last week, Caesars dismissed as “meritless” a request from the Wilmington Savings Fund Society for immediate payment of $3.68 billion in principal and $185 million in interest. Caesars has said there isn’t any guarantee by the parent company on second level notes.

Several second-lien bondholders have sued Caesars over the debt while it tries to reorganize its Caesars Entertainment Operating Co. through a prepackaged bankruptcy filing with the U.S. Bankruptcy Court in Chicago.

The company has a deal in place with first-lien bondholders and banks to eliminate more than $10 billion of CEOC’s $18.4 billion debt load.

Caesars is seeking court approval to convert CEOC into a publicly traded real estate investment trust. CEOC controls Caesars Palace, Caesars Atlantic City, Harrah’s Reno and more than a dozen regional properties.

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