Caesars Entertainment wins temporary reprieve of creditor lawsuits

Beleaguered casino operator Caesars Entertainment has won a temporary reprieve from having to face creditor lawsuits.

On Wednesday, US Bankruptcy Court Judge Benjamin Goldgar told Caesars he had suspended bondholder lawsuits in Delaware and New York until Aug. 29. The period is shorter than Caesars had requested and Goldgar said the likelihood of him renewing the freeze after that date “will be slim.”

Caesars is attempting to restructure its main unit Caesars Entertainment Operating Co (CEOC), which filed for bankruptcy in January 2015, citing over $18b in debt.

Junior creditors, who have been asked to bear most of the fiscal pain of this restructuring, have filed lawsuits accusing CEOC’s parent company Caesars Entertainment Corporation (CEC) of illegally shifting profitable assets out of CEOC into other CEC divisions prior to the bankruptcy filing.