Caesars Says Claims Of Default Are 'meritless'

Caesars Entertainment Corp. said in a regulatory filing that it believes that UMB Bank's claim that it defaulted on certain senior secured notes is "meritless." The casino operator said UMB claims certain asset sales and transactions with affiliates violated covenants under the First Lien Noted Indenture, and therefore constitute defaults. Caesars said there were approximately $1.25 billion of notes outstanding under the First Lien Notes Indenture. The company said if its obligations under those notes were accelerated, it would have a material adverse effect on its business and financial condition, as it would lead to defaults under other notes. But Caesars "does not believe that a default or an event of default has occurred." The stock was down 0.2% in choppy trade early Monday, and has already been down as much as 1.3% and up as much as 1.2% within the first 20 minutes of trading. The stock has lost 26% year to date, while the S&P 500 has gained 12%.