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Caesars Entertainment Corp. faces a new attack in its effort to cut billions in debt, this time from a trustee for bondholders whose support the casino giant needs to restructure its bankrupt operating unit, Bloomberg News reported yesterday. UMB Bank, a trustee for senior bondholders owed more than $6 billion, sued Caesars Monday in Manhattan federal court, echoing allegations that until now had been mostly pushed by a less-influential group of lower-ranking creditors. Caesars has tried for months to line up enough senior creditors to win approval of a proposal to cut lower-ranking debt, allow the parent to retain a stake in the operating unit and halt related lawsuits against its private-equity owners, Apollo Global Management and TPG Capital.

U.S. gun maker Colt filed for bankruptcy protection on Sunday and has put itself up for sale in an unusual auction with an opening proposal from its current owner, Reuters reported yesterday. An affiliate of private equity firm Sciens Capital Management has proposed buying Colt Defense by assuming obligations including up to $105 million in outstanding loans and as much as $20 million in new loans, court documents filed on Monday show. The stalking-horse bid does not involve any cash and sheds $250 million in bonds. In other words, Colt would look much like it does now, only without the bonds.

The Roman Catholic Archdiocese of Saint Paul and Minneapolis, whose top two officials resigned Monday in wake of criminal charges over the alleged failure to protect children from abusive priests, is facing an unprecedented convergence of litigation that lawyers say will continue to pose serious challenges for the archdiocese’s leadership, the Wall Street Journal reported today. Archbishop John C. Nienstedt, who stepped aside along with Auxiliary Bishop Lee Anthony Piche, said yesterday that he resigned to give the archdiocese a new beginning. The criminal charges against the diocese and the recent resignation of its top officials could give lawyers representing alleged victims added leverage as they negotiate the terms of a bankruptcy-exit plan and compensation package for victims. The archdiocese, its insurance carriers and alleged victims were ordered to begin mediation shortly after filing for chapter 11 protection. The resignations and recent criminal charges come as church leaders across the country continue to grapple with widespread allegations of child sexual abuse at the hands of clergy and related lawsuits. The abuse scandal has cost dioceses and other Catholic institutions in the U.S. nearly $2.9 billion since 2004 in compensation paid out to alleged victims, according to a recent report issued by the U.S. Conference of Catholic Bishops.

RadioShack Corp. filed a bankruptcy liquidation plan explaining how the remaining assets of the once-iconic consumer-electronics retailer will be distributed, Bloomberg News reported on Saturday. The plan follows the sale of about 1,700 of the Fort Worth, Texas-based chain’s stores -- as well as the rights to its name -- to Standard General LP. The hedge fund plans to run the locations under a co-branding arrangement with Sprint Corp. In addition to buying the stores for about $145.5 million, Standard General purchased data on about 67 million customers in a $26.2 million deal for assets including the RadioShack name. The plan filed on Friday in bankruptcy court doesn’t include specific distribution amounts.

A top executive of bankrupt Corinthian Colleges Inc. on Friday detailed the for-profit higher education company's executive pay and recent financial dealings, as creditors began the hunt to find money to repay what they are owed, Reuters reported on Friday. Corinthian Chief Financial Officer Robert Owen spent four hours in a windowless government conference room discussing under oath everything from fraud allegations to questions about a $125.02 expense payment to an executive. In April, Corinthian closed its remaining campuses without warning. It filed for bankruptcy in May. Corinthian has released thousands of pages of documents, including details of payments to Chief Executive Officer Jack Massimino. He received cash payments of $1.03 million in the year before the bankruptcy, according to court filings. The company agreed to pay him a $900,000 salary in 2014, according to securities filings. The disclosures also showed that Corinthian paid out nearly $1 million in bonuses to executives, directors and managers in late June 2014. The bonuses were paid less than two weeks after regulators tightened oversight of the company, a move that hastened its demise.

The Erie (Pa.) Otters will be sold at auction with prospective buyers in the Otters case submitting their offers by June 24 and will be unable to bid the day of the auction, now set for July 10 in U.S. Bankruptcy Court in Erie, the Erie Times-News reported yesterday. Last-minute bids are standard in most bankruptcy sales, but Bankruptcy Judge Thomas P. Agresti set the June 24 deadline because of the complexity of the sale, according to newly filed court records. Judge Agresti said that he primarily wants to give the Ontario Hockey League enough time to vet the prospective buyers before July 10. Agresti and the OHL must approve any deal.

A reorganization plan intended to shepherd Chassix Holdings Inc. out of bankruptcy protection is facing headwinds from unsecured creditors, who say that the reorganized auto-parts maker has been undervalued by $150 million, Dow Jones Daily Bankruptcy Review reported today. In an objection filed on Wednesday in bankruptcy court, lawyers for unsecured creditors said that the difference in valuation benefits the company's bondholders at the expense of its unsecured creditors, who are currently slated to recover between 5 percent and 16 percent of what they are owed. In its own court papers, Chassix has called the plan both fair and reasonable.

A financial adviser to NII Holdings' creditors testified yesterday that the bankrupt wireless operator's $4.35 billion restructuring plan is good for all creditors, including those who oppose it, Reuters reported yesterday. Andrew Scruton of FTI Consulting took the stand on the fifth day of a trial over a plan by NII, which operates the Nextel brand in Brazil, to hand control of the company to Aurelius Capital Management and other holders of $4.35 billion in debt. The plan, which needs the approval of Bankruptcy Judge Shelley Chapman, is supported by most creditors, but opposed by a bondholder faction known as the CapCo group. It alleges that Aurelius and other powerful holders designed the plan themselves as a sweetheart deal, costing CapCo $150 million, more than a third of its total payout. Scruton, who advised NII's unsecured creditors' committee, said that the deal will benefit the CapCo group.

Comcast Corp. was accused of sabotaging a Houston television network it co-owned with baseball’s Astros and basketball’s Rockets so it could acquire the teams’ broadcast rights on the cheap, Bloomberg News reported yesterday. The professional sports teams sued Comcast in a Texas bankruptcy court yesterday claiming that the largest U.S. cable operator sought to “financially cripple” the network to drive down its value and make it ripe for a low-cost acquisition. “Comcast did everything in its power to financially impair” the Houston Regional Sports Network so it could acquire broadcast rights to Astros and Rockets games “at a significant discount,” the teams said in the complaint. Comcast and its units deny the claims. 

Walter Energy Inc. will miss an interest payment to junior noteholders due in four days as it negotiates with creditors to restructure its debt, Bloomberg News reported today. The unprofitable coal producer will enter into a 30-day grace period starting June 15 on $19 million due to holders of its $388 million 9.875 percent unsecured note maturing in December 2020, the company said yesterday. Walter’s plan to skip the coupon payment for now comes as it continues negotiations on a restructuring of its $3.1 billion debt load.