A Caesars Entertainment Corp. creditor group said managers should be stripped of control of the casino company’s operating unit because they looted the subsidiary of billions of dollars in assets, Bloomberg News reported on Thursday. UMB Bank, trustee for first-lien noteholders owed about $1.25 billion, sued Caesars yesterday in Delaware Chancery Court, repeating allegations made by junior creditors in August. Yesterday’s suit, the first by senior creditors, came after some had agreed on the outline of a debt restructuring plan for the operating unit. The first-lien creditors yesterday asked the court to appoint a receiver for the unit.
