Caesars Entertainment Corp. said on Friday that it appointed a retired bankruptcy judge to the new role of chief restructuring officer after it warned it could be forced into chapter 11 protection, Reuters reported on Friday. Caesars is facing billions of dollars of lawsuits by creditors of its bankrupt casino operating unit, Caesars Entertainment Operating Co. (CEOC), who have accused the parent of pillaging the unit before it filed for chapter 11 protection last year. Caesars has denied the allegations. However, it said in a statement on Friday that in the event it had an adverse court ruling or if CEOC lingered in bankruptcy, "it is likely that Caesars Entertainment would seek reorganization under chapter 11 of the bankruptcy code." Caesars said that due to mounting legal costs its independent director committee had recommended the appointment of Robert Gerber, who retired as a U.S. Bankruptcy judge for the Southern District of New York in January, for the new role. An independent examiner said in March that Caesars may be responsible for up to $5.1 billion for transactions involving CEOC prior to its bankruptcy. Read more.
Learn more about a CRO’s responsibilities with ABI’s The Chief Restructuring Officers Guide to Bankruptcy: Views from Leading Insolvency Professionals.
