The bankrupt operating unit of Caesars Entertainment Corp. asked a U.S. bankruptcy judge to block creditors from pursuing litigation against its parent, as talks aimed at resolving the complex case broke down with one group of creditors, Reuters reported yesterday. The possibility of reaching a consensual agreement on a plan to exit bankruptcy looked remote after an independent mediator brought in to broker a settlement between the feuding parties said that restructuring talks between the nonbankrupt parent and junior creditors had reached a deadlock. The Caesars operating unit filed for bankruptcy protection in January 2015 with $18 billion of debt. The parent company has offered $4 billion to help its casino operating unit emerge from chapter 11, but the plan is opposed by junior creditors who accuse the private equity-backed parent of looting the unit of its best assets before the bankruptcy filing. The junior creditors say they have claims worth as much as $12 billion. Caesars has denied the allegations. Bankruptcy Judge Benjamin Goldgar will hold a hearing on the request to halt the New York and Delaware litigation on Wednesday, a day after a hearing on the bankrupt unit's disclosure statement, which describes its plan to exit chapter 11.
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