Casino operator Caesars Entertainment has been granted yet another temporary reprieve from junior creditor lawsuits.
On Tuesday, US District Judge Robert Gettleman gave Caesars until October 5 to appeal a bankruptcy court ruling that would have allowed junior bondholder lawsuits to proceed against Caesars and its bankrupt main unit, Caesars Entertainment Operating Co (CEOC).
Caesars’ shares closed Monday’s trading down 16% after US Bankruptcy Judge Benjamin Goldgar issued a ruling on Friday that refused to grant Caesars a third stay of the junior bondholder lawsuits.
The bondholders sued Caesars in Delaware and New York courts over what they claim were illegal asset transfers and an illegal withdrawal of guarantees by the parent company on some $11.4b in CEOC debt prior to CEOC filing for Chapter 11 protection in January 2015.