Caesars granted extension of bankruptcy control … until the Ides of March

Financially struggling casino operator Caesars Entertainment Corp has been granted a four-month extension on retaining control over the bankruptcy proceedings of its main unit.

On Wednesday, US Bankruptcy Judge Benjamin Goldgar approved Caesars’ request for an extension on its exclusive control over the bankruptcy of its main unit, Caesars Entertainment Operating Co (CEOC). This marks the second extension CEOC has received, and will push the new deadline from Nov. 15 to March 15, 2016.

CEOC filed for Chapter 11 protection in Illinois in January, citing over $18b in debts. The company has been trying to sell its creditors on a restructuring plan but since the plan calls for many of the second-lien note holders to receive pennies on the dollar, these creditors – who hold about $6b of CEOC’s debt – aren’t playing ball.

Goldgar’s ruling prevents these junior creditors from proposing alternative restructuring plans, but it has no effect on the lawsuits many of these same creditors have filed in New York and Delaware. Last month, Caesars lost a bid to prevent these suits from going forward while its bankruptcy proceedings are still in play.