Bankruptcy judge unlikely to shield Caesars from lawsuits

Struggling casino operator Caesars Entertainment Corp. (CEC) is bracing itself from a volley of future bondholder lawsuits as a federal judge hearing its bankruptcy case may not push the shield button.

On top of that, Casesars’ plea for a $900 million bailout has fallen on the deaf ears of the company’s majority shareholders, Apollo Global Management and TPG capital.

Bloomberg reported that U.S. Bankruptcy Judge A. Benjamin Goldgar, which is expected to decide on Friday whether to extend a halt on lawsuits in New York and Delaware, is unlikely award Caesars with a bondholder lawsuit protection lawsuits that would last as long as its insolvent operating company is in bankruptcy

Judge Goldgar offered hints of his likely decision near the end of a three-day hearing of Caesar’s petition to extend a ban on the lawsuits, which is crucial to making progress toward a settlement with creditors, Reuters reports.