Judge Delays Caesars Hearing

A U.S. bankruptcy judge has denied an expedited hearing for the reorganization plan of Caesars Entertainment Operating Company, demanding additional information.

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.