ator Caesars Entertainment Corporation (CEC) and Caesars Entertainment Operating Company (CEOC) have entered into a bank restructuring support agreement.

CEOC filed for Chapter 11 bankruptcy in January in a move to reduce its debt from $18.4bn to $8.6bn, and it was announced last week that CEC had ceased discussions with the Ad Hoc Bank Steering Committee with regards to a financial restructuring plan.

The agreement between CEC and CEOC is effective immediately and will be supported by CEOC’s most senior creditor constituencies.

CEOC’s restructuring is to be supported by its first lien bank lenders and first lien bondholders, representing the most senior $12bn of CEOC’s capital structure.

Talks between CEC, CEOC and junior creditors are ongoing to build additional support for the previously announced second lien restructuring agreement to complete the restructuring consensually.

Discussions between CEC, CEOC and the Committee ended after a telephone meeting was held last week with the respective legal and financial advisers of all three parties.

The Committee had previously proposed certain changes to the CEOC bankruptcy restructuring, and CEC made a proposal of its own, outlining six changes to the new terms.

The outcome of the meeting was that CEC is no longer in discussions with the Committee as of last Tuesday.