Bankruptcy Judge A. Benjamin Goldgar said yesterday that Caesars Entertainment Corp. is unlikely to get protection from bondholder lawsuits that would last as long as its insolvent operating company is in bankruptcy, Bloomberg News reported. Judge Goldgar today will decide whether to extend a halt on lawsuits in New York and Delaware, and if so, for how long. Goldgar made it clear yesterday that he would not give Caesars a lawsuit shield that lasts until after Caesars Entertainment Operating Co. wins approval of its reorganization plan, which can’t happen until next year at the earliest. “I’ve said that isn’t going to happen,” Goldgar said yesterday near the end of a three-day hearing on possibly halting bondholder lawsuits that could impose $11.4 billion in judgments on the parent company. The lawsuits are the biggest obstacle left to getting Caesars’ main operating unit out of bankruptcy. Bondholders want to use the suits, which a court examiner found have a good chance of succeeding, to boost their recoveries to more than the 34 percent offered by CEOC.
Core Media has been given an escape hatch from its agreements with Simon Fuller, the creator of “American Idol.” Bankruptcy Judge Stuart Bernstein granted a motion that will cause Fuller to lose out on a 10 percent profit share from Idol as well as “So You Think You Can Dance,” The Hollywood Reporter reported yesterday. The development comes amid an escalating feud between Fuller and Core Media, the parent company of 19 Entertainment that filed chapter 11 protection in April after Fox canceled the long-running singing competition show. Fuller has been hounding the company for several million dollars and has hinted at bringing fraud claims. In reaction to Fuller's demands, which came as Core was working with its lenders to restructure almost $400 million in debt, Core wanted an order pursuant to bankruptcy code authorizing the rejection of Fuller's consulting agreements. Back in 2010, when Fuller left 19 Entertainment, he signed a lucrative deal that entitled him to substantial payments in return for executive producer and consulting services.