U.S. Watchdog Raises Concern over Caesars Creditor Deal

On January 15, 2015, Caesars Entertainment Operating Company (CEOC), a subsidiary of Caesars Entertainment, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Illinois in Chicago (Case No. 15-01145).

On Wednesday, October 19, 2016, a “lawyer for the U.S. government’s bankruptcy watchdog raised concerns in court on Wednesday over Caesars Entertainment Corp’s (CZR.O) $5 billion creditor deal to push its main unit out of Chapter 11, even as hold-out creditors appeared closer to backing the agreement.”

“Las Vegas-based Caesars reached an agreement with creditors last month that includes a $5 billion contribution to CEOC’s reorganization plan in exchange for releases from billions of dollars in legal claims. Even though most of the creditors have agreed to drop their allegations against Caesars, the U.S. bankruptcy code holds that any deal must adhere to the law, Denise Delaurent, an attorney with the U.S. Trustee, said at an Illinois court hearing.” CEOC denies any wrongdoing.

You can read Reuters article here.

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