A bondholder lawsuit against Caesars Entertainment Corp., which the casino company has warned could plunge it into bankruptcy alongside its operating unit, was stayed by Bankruptcy Judge Benjamin Goldgar on Friday, Reuters reported. Judge Goldgar said that the stay on the litigation would be lifted either on May 9 or 60 days after an examiner publishes his report into corporate deals that the bondholders allege stripped the operating unit of its best assets. The operating unit filed for bankruptcy in Goldgar's court last year. The judge ordered an examiner, Richard Davis, to investigate those allegations and Davis has said that his report will be released by the middle of March. Caesars has said that it expects to prevail in the lawsuit in federal court in Manhattan, but it wanted to remove the threat it could be found to be liable for billions of dollars to holders of bonds issued by its operating unit. The bondholders sued in New York because they believe the parent company guaranteed the bonds, which were issued by the now-bankrupt Caesars Entertainment Operating Co Inc.
