Supplier News
US – Bankruptcy watchdog says no to Caesars
By Phil - 25 November 2016
The US Trustee, a US government watchdog overseeing the administration of bankruptcy cases, has objected to a Caesars subsidiary’s attempts to exit Chapter 11 bankruptcy.
The objection could thwart Caesars’’ proposal to write off $10bn of debt.
The casino giant’s subsidiary, Caesars Entertainment Operating Co. Inc. (CEOC), filed the $18bn bankruptcy in January 2015 but was accused of stripping the company of its leading assets by disgruntled investors who legally challenged the move.
Caesars agreed to pay a $5bn contribution towards the reorganisation plan in order to release itself from the legal action.
In its filing with the US Bankruptcy Court in Chicago, the US Trustee said it objected to move and the exculpation of ‘a wide array of parties for acts far beyond the plan or the Chapter 11 cases.’ The US Trustee described the releases as ‘blanket immunity’ said they were too broad for shielding against wilful misconduct or actual fraud.
A trial to confirm the bankruptcy has been set for January and will take place in Chicago.
