A US Bankruptcy Judge refused Caesars Entertainment Corp a court shield from pending lawsuits related to its main operating unit’s Chapter 11 bankruptcy case.
US.- A US Bankruptcy Judge refused gambling operator Caesars Entertainment Corp. a third court shield from pending lawsuits related to its main operating unit’s Chapter 11 bankruptcy case. After the ruling the company may eventually be required to honor debt guarantees of US$11 billion.
Caesars Entertainment Operating Co (CEOC) asked to have its parent company shielded in an attempt to save a US$4 billion contribution promised to be granted by Caesars for its subsidiary’s reorganisation plan.
Now, U.S. Bankruptcy Judge Benjamin Goldgar ruled on Friday that Caesars would not be shielded for a third time. The judge considered that another injunction wouldn’t help the involved parties to settle the matter.
The current injunction expires today, August 29. Tomorrow, a federal judge will be able to rule in New York whether the gambling operator will have to honor debt guarantees of US$7.7 billion.