U.S. District Judge Shira Scheindlin ruled yesterday that a legal battle between junior and senior creditors of the bankrupt division of Caesars Entertainment Corp. should be heard in Chicago rather than New York, Reuters reported yesterday. The chapter 11 filing by the largest casino operator in the U.S., Caesars Entertainment Operating Company, Inc. (CEOC), has been marked by bitter feuding among creditors over everything from when, where and how the bankruptcy was filed. In this case, senior creditors led by Credit Suisse had sought to pursue a lawsuit against junior creditors, including units of Appaloosa Management and Oaktree Capital Management, in New York rather than Chicago, where CEOC filed for bankruptcy. Judge Scheindlin agreed with the junior creditors that it would be more efficient and would likely help resolve the bankruptcy case to send the Credit Suisse case to Chicago.
