A lawyer for the U.S. government's bankruptcy watchdog raised concerns in court over Caesars Entertainment Corp.’s $5 billion creditor deal to push its main unit out of chapter 11, even as hold-out creditors appeared closer to backing the agreement, Reuters reported yesterday. Caesars Entertainment Operating Co. Inc. filed for bankruptcy in January 2015 amid allegations by creditors that its parent had looted the unit of its best assets, leaving it with $18 billion of debt. Las Vegas-based Caesars reached an agreement with creditors last month that includes a $5 billion contribution to CEOC's reorganization plan in exchange for releases from billions of dollars in legal claims. Even though most of the creditors have agreed to drop their allegations against Caesars, the Bankruptcy Code holds that any deal must adhere to the law, Denise Delaurent, an attorney with the U.S. Trustee’s Office, said at an Illinois court hearing. She said her office was reviewing fees and aspects of the deal that released some parties from lawsuits. "From our perspective even if everyone comes to an agreement, it might still violate the law," she said.
