Caesars Entertainment Operating Co.’s restructuring chief said yesterday that he thinks the company has “set the table” for a successful reorganization, but lawsuits against the casino giant’s parent could hamper the progress made in the company’s bankruptcy case, the Wall Street Journal reported today. Testifying at day two of a trial to decide whether lawsuits filed against CEOC’s non-bankrupt parent, Caesars Entertainment Corp., can move forward, Randall S. Eisenberg said the market would gain confidence if it knew CEC wasn’t potentially on the hook — at least immediately — for billions of dollars related to prebankruptcy asset transfers between itself and CEOC. A $1.5 billion contribution by CEC is a lynchpin of CEOC’s current restructuring plan, and it wouldn’t have that money if it lost the suits, both Caesars entities have said. Read more. (Subscription required.)
In related news, prepetition lender Salus Capital Partners LLC wants to convert the bankruptcy case of RadioShack Corp. to chapter 7 to preserve any remaining value of the estate, The Deal reported today. Salus on June 2 filed a motion in the U.S. Bankruptcy Court for the District of Delaware in Wilmington to convert the proceedings from chapter 11, asserting the company no longer has a viable business to reorganize. Salus also said there is no advantage to liquidating the debtor's remaining assets, which primarily consist of potential litigation claims, in chapter 11. Bankruptcy Judge Brendan Linehan Shannon has scheduled a hearing on the motion for June 25. Read more.
