Caesars Entertainment Corp. warned this week that the litigation stemming from its restructuring efforts could hamper its ability to continue operating as a going concern, Reuters reported today. Creditors have brought numerous lawsuits alleging fraud over transfers of assets out of the operating unit, Caesars Entertainment Operating Co. As the unit struggled to overhaul its operations prior to filing for bankruptcy in January, it transferred a number of its most valuable properties and casinos to affiliates of the parent company. Creditors have alleged that the moves were illegal efforts to put the assets beyond their reach. Caesars Entertainment said that when the operating unit filed for bankruptcy on Jan. 15 the parent would not need outside financing and would be able to guarantee the lease obligations of the operating unit.
