A lawyer for Caesars Entertainment Operating Co. (CEOC) has asked a bankruptcy judge to halt lawsuits against its parent temporarily so it can complete negotiations with creditors on a consensual reorganization plan, Reuters reported yesterday. The casino group said that it is close to reaching agreement with its diverse creditors on a reorganization plan that includes a $4 billion contribution Caesars Entertainment Corp. This asset is threatened by imminent judgments from lawsuits filed by several hedge funds seeking a total of $11.4 billion. The hedge funds' lawsuits allege that the parent reneged on guarantees on bonds issued by its unit, and Caesars denies the allegations. Rulings against the parent could push it into bankruptcy alongside its unit. An independent examiner concluded in March that Caesars and its private-equity sponsors, Apollo Global Management and TPG Capital, could be on the hook for $5 billion in potential damages from the unit's bankruptcy. Bankruptcy Judge Benjamin Goldgar said he will make a decision at 10 a.m. CDT on Wednesday, a day before the Delaware Chancery Court could enter judgment against the parent on $3.7 billion in claims. A Manhattan judge could rule on another $7.7 billion in claims between June 24 and July 22.
