Caesars Entertainment Corp. won a short reprieve in its litigation with bondholders, once again hitting the pause button in its multibillion-dollar battle, the Wall Street Journal reported today. Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois yesterday granted a motion that pushes back litigation in New York, which was slated to begin Tuesday afternoon, until Sept. 16. At issue is whether Caesars must honor more than $11 billion in guarantees for the debt of its bankrupt operating unit, Caesars Entertainment Operating Co. Last week, Bankruptcy Judge A. Benjamin Goldgar said that he wouldn’t renew the shield that protected Caesars from the lawsuits over whether it must honor the debt guarantees. Litigation was set to begin Tuesday on whether a $7.7 billion payment to bondholders would be made by Caesars. Meanwhile, another suit over $3.7 billion in debt guarantees was scheduled to be argued before a Delaware state court in September. CEOC has filed an appeal that will be heard by Judge Kennelly today.
