A bankruptcy judge has saved the Caesars Entertainment empire — at least temporarily, the New York Post reported yesterday. Judge Benjamin Goldgar halted for 74 days two creditor lawsuits that could have taken down the country’s largest casino chain. The move gives the casino operator’s owner, Apollo Global Management, time to work out a deal with the creditor groups, thus handing it the opportunity to sidestep a possible multibillion-dollar judgment against it. Judge Goldgar’s freeze on the lawsuits expires Aug. 29. Caesars put its largest subsidiary, Caesars Entertainment Operating Co., or CEOC, into chapter 11 about 18 months ago and has been unsuccessful in reaching a restructuring agreement with CEOC's creditors, who own $18 billion in loans. Several CEOC creditors holding $11 billion in loans claim Caesars needs to contribute billions of dollars to fatten their payout, or risk having the entire chain tumble into reorganization. Caesars feels that with more time it can strike a deal with its creditors. However, Caesars did not get a total victory. The judge also gave one CEOC creditor, David Tepper’s Appaloosa Management, a sword. Apollo is expected to give up a controlling interest in Caesars as part of a proposed restructuring plan that would give CEOC creditors equity in a new combined company.
