Creditors of Caesars Entertainment Operating Co. sued the bankrupt casino company, accusing it of trying to buy votes for its reorganization plan, Bloomberg News reported yesterday. A group of mid-level bondholders said in a complaint filed in bankruptcy court that Caesars promised $200 million in improper payments to other creditors to secure their support. The second-lien noteholders, who have been the company’s most vocal opponents, claimed that Caesars “has pledged to continue its illegal vote-buying campaign” to persuade more creditors to back the proposal. Caesars has said that it’s making progress in getting some of the second-lien noteholders to switch sides, while a lawsuit in Manhattan federal court by the trustee for those creditors could force Caesars Entertainment Corp. to join its main operating unit in bankruptcy.
