A U.S. bankruptcy judge pushed back a decision until later this month on whether to allow the operating unit of Caesars Entertainment Corp. to move forward with a restructuring plan vigorously opposed by some creditors, Reuters reported today. The casino unit has presented a reorganization plan that includes a $4 billion contribution from its nonbankrupt parent to settle allegations of asset-stripping prior to the unit's bankruptcy filing in January 2015. Junior creditors have said the parent could be on the hook for as much $12 billion in claims. Caesars has denied the allegations. A mediation meant to help the feuding camps reach a settlement broke down on Monday. Various groups of creditors said in court on Tuesday that the plan was incomplete, particularly regarding protections from lawsuits it provided to Caesars and its private-equity sponsors, Apollo Global Management and TPG Capital. Negotiations with creditor groups were continuing and they will present a new plan by June 15. A disclosure statement will be presented to the court on June 22, and if approved, the bankrupt unit could begin seeking creditor votes.
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