Judge Robert Gettleman gave Caesars Entertainment Corp. a five-week grace period before the company must face numerous lawsuits.
US.- During an emergency court hearing held in Chicago, US Northern District of Illinois Federal Judge Robert Gettleman granted Caesars Entertainment Corp. a five-week grace period before it must face creditors looking to sever ties with the casino company.
As per the ruling, Caesars Entertainment Corp. can delay facing US$13 billion in lawsuits until at least October 5. On that day, Gettleman will decide whether to overturn a US Bankruptcy Court ruling made on August 26.
Last week, Bankruptcy Court Judge Benjamin Goldgar refused to give Caesars Entertainment Corp. the shield extension. The Las Vegas-based casino operator was scheduled to begin facing its creditors on Tuesday in a New York federal court. Now Gettleman has stepped in granting Caesars the five-week grace period to sort it all out.
The staggering US$13 billion debt is being held by Caesar Entertainment Corp’s subsidiary, Caesars Entertainment Operating Co (CEOC). Back in January, the casino operator spun its debt into CEOC, in an effort to free the parent company from the financial burden.