Lawyers for Caesars Entertainment’s largest operating unit have asked the judge in its federal bankruptcy case for an additional six months to prepare its reorganization plan. The restructuring plan is due May 15, but lawyers for Caesars Entertainment Operating Company (CEOC) are asking that the deadline be moved to November 15.
Under the new deadline, principals in the case would have until January 15, 2016 to consider and vote on the proposed plan.
CEOC’s restructuring plan would eliminate an estimated $10 billion in debt from the unit’s $18 billion load, based on four months of negotiations with senior creditors. However, CEOC attorneys say the complexity of the case, which involves 173 separate business entities, as well as lawsuits from lower-level creditors and a pending investigation of transactions prior to the January 15 bankruptcy filing, warrant an extension in the filing of the plan.
“These cases are in their early stages and numerous outstanding contingencies could have a significant impact on the terms of the plan or a new plan proposed by the debtors,” Caesars said in the filing. The independent investigation alone is expected to take up to six months.
U.S. Bankruptcy Judge A. Benjamin Goldgar has scheduled a hearing on April 29 to consider CEOC’s extension request.
