The bankrupt operating unit of Caesars Entertainment Corp will soon ask a U.S. judge to shield its parent from $12 billion of lawsuits to facilitate a debt-cutting rescue deal, but approval could set a bad precedent for creditors, Reuters reported on Friday. Hedge fund bondholders have sued Caesars in New York and Delaware over guarantees on the bankrupt unit's debt. While Caesars has said that the lawsuits are without merit, it has warned it could join its operating unit in bankruptcy if rulings go against it. Bankruptcy Judge Benjamin Goldgar in July denied a request by Caesars to stay the lawsuits, but a U.S. appeals court has since said that ruling should be reviewed. The case returns to Judge Goldgar this week.
