A U.S. judge on Wednesday halted a lawsuit against Caesars Entertainment Corp., saying that it could derail last week's $5 billion agreement that was aimed at extracting the casino company from a costly bankruptcy, Reuters reported today. While a vast majority of Caesars creditors agreed to drop some $13 billion in legal claims against the casino group last week, a hedge fund with a $9.4 million claim refused to back the deal and sought to pursue its lawsuit. Trilogy Capital Management is one of several hedge funds that had accused Caesars of scrapping a guarantee on the debt of its bankrupt subsidiary, Caesars Entertainment Operating Co. Inc. (CEOC). A judgment in New York was due as soon as today. "The risk that the Trilogy action will derail the reorganization is too great," Bankruptcy Judge Benjamin Goldgar said yesterday. CEOC has secured the support of creditors who until last week were threatening its Nasdaq-listed parent with billions of dollars in claims over a series of transactions prior to the unit's bankruptcy filing in January 2015 with $18 billion of debt.
