The U.S. Bankruptcy Court judge hearing the Chapter 11 case of Caesars Entertainment’s largest operating unit has denied a motion by the operator for an expedited hearing to examine an outline of its reorganization plan, known as a disclosure statement.
Judge Benjamin Goldgar told lawyers for Caesars Entertainment Operating Company (CEOC) that the disclosure statement “has blanks in it,” and that allegations by lower-level creditors suing the company must be examined before any ruling on the reorganization plan hammered out last year between CEOC and its top-line bondholders.
Goldgar specifically cited allegations by lower-level creditors that parent company Caesars Entertainment moved valuable assets from CEOC to a real-estate investment trust to shield them from creditors prior to its January Chapter 11 filing.
Approval of the disclosure statement would be a first step toward court approval of CEOC’s plan to eliminate some $10 billion in debt from its ledger.
