Bankruptcy Judge Benjamin Goldgar allowed the casino operating unit of Caesars Entertainment Corp. to begin seeking creditor votes for a plan to exit its long and contentious $18 billion bankruptcy, Reuters reported yesterday. A confirmation hearing will begin on January 17, 2017, two years after the company filed for chapter 11 protection. The bankruptcy of Caesars Entertainment Operating Co. (CEOC) has been rocked by creditor accusations that the nonbankrupt Caesars parent looted its operating unit of choice hotel and casino assets before the latter's January 2015 filing for chapter 11 protection. Caesars has denied wrongdoing. It offered to contribute roughly $4 billion to CEOC's bankruptcy plan to settle the allegations after an independent examiner said it could be on the hook for up to $5.1 billion. Following intense negotiations with creditors, CEOC lawyers said yesterday that they have made "significant progress" in obtaining pledges of support for the reorganization plan, which will slash $10 billion of debt and split the unit into a new operating company and a real estate investment trust.
