The judge overseeing the bankruptcy of Caesars Entertainment Corp.’s main operating unit said he’s not sure he has the power to halt bondholder lawsuits in other courts that could tip the parent company into Chapter 11, Bloomberg reported.
Caesars Entertainment Operating Co., filed for bankruptcy in January 2015. It’s asking for a court order to block parties from taking action in the suits, which target the parent company for actions preceding the unit’s Chapter 11 filing.
U.S. Bankruptcy Judge A. Benjamin Goldgar said at a hearing in Chicago Wednesday that it may not make any difference if he tells the parties to put the brakes on the litigation, since much of the briefing has been completed. The judges in New York and Delaware appear to have enough information to rule without jury trials, he said.
“If it is just a matter of enjoining the parties, I don’t see the emergency,” Goldgar said. It may be too late to stop either court from ruling, he said. Also, Goldgar questioned whether he has the authority in this situation to tell another judge not to rule, even though he’s allowed to order the parties to stand down.
Caesars has threatened to pull out of a $4 billion deal to reorganize the bankrupt CEOC if Goldgar refuses to halt the lawsuits by next week
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: [email protected].