Caesars Entertainment Corp began a trial yesterday, hoping to convince a judge to put on hold lawsuits against the casino company that it said threatened plans to overhaul $18 billion in debt owed by its operating affiliate, Reuters reported. Groups of creditors have sued Caesars alleging that it must honor a guarantee of billions of dollars in the debt of its operating affiliate, Caesars Entertainment Operating Co. Inc., which filed for bankruptcy protection in January. The lawsuits also alleged the parent company transferred billions of dollars of choice properties and casinos from the operating unit in the years leading up the bankruptcy, which benefited the parent and its private equity backers. Caesars has said that its guarantees of the operating unit's debts were properly voided, and that the asset transfers were done for fair value. Read more.
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