Caesars Entertainment Corp. is lobbying to roll back a Depression-era creditor-protection law that could complicate the casino giant’s financial restructuring, the Wall Street Journal reported today. The Las Vegas company and its owner, Apollo Global Management LLC, have been working to support legislation that would amend the Trust Indenture Act of 1939. Some lawmakers, including Sen. Harry Reid (D-Nevada), have pushed to include the measure in a sweeping spending bill that Congress must pass by Friday to avoid a government shutdown. An amendment to the law could gut lawsuits against Caesars brought by bondholders of the company’s bankrupt operating division. The bondholders have filed a lawsuit arguing that transactions that took the Caesars parent company off the hook to guarantee their debt violated the Trust Indenture Act. The law protects creditors against transactions that impair their principal or interest payments.
