Caesars Entertainment Operating Co. was denied permission to pursue a quicker-than-normal appeal of a ruling that allows bondholder lawsuits against its parent to proceed while the operating unit reorganizes in bankruptcy, Bloomberg News reported yesterday. The casino giant is racing to overturn the July 22 ruling, in which a judge declined to protect Las Vegas-based Caesars Entertainment Corp. from four lawsuits that the company has said might push it into bankruptcy alongside its main operating subsidiary. Bankruptcy Judge A. Benjamin Goldgar yesterday turned back a request to appeal his decision directly to the federal circuit court, bypassing the district court. “I’m not convinced a direct appeal will expedite anything here,” Goldgar said. Yesterday’s decision makes it more difficult for the company to halt the bondholder litigation before a Manhattan federal judge can consider imposing billions of dollars in liability on the parent. The next option for Caesars may be to ask the district court in Chicago to expedite a ruling on Goldgar’s decision before Aug. 7, the final day for briefing in the Manhattan case.
