The bankrupt operating unit of Caesars Entertainment Corp. asked a judge yesterday to extend a lawsuit shield for its parent company, which a financial advisor said is critical to making progress toward a settlement with holdout creditors, Reuters reported. Negotiations are advancing thanks to the prospect of more cash for creditors following the $4.4 billion sale of another Caesars affiliate last month and the possibility of financial contributions from Caesars' private equity sponsors, Brendan Hayes, managing director of Millstein & Co said at a hearing. But negotiations need to take place without the threat of judgments on bondholder litigation currently pending in New York and Delaware against the non-bankrupt Caesars parent, Hayes said. Parties in the long and litigious $18 billion bankruptcy met in U.S. Bankruptcy Court in Chicago as Caesars Entertainment Operating Co Inc. requested a third halt to $11.4 billion in lawsuits by noteholders against its parent over bond guarantees. A current injunction expires on Aug. 29.
