Caesars Creditors Beat Apollo to Punch With Early Bankruptcy
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Lower-ranking creditors of Caesars Entertainment Corp. moved to force the casino company’s main operating unit into bankruptcy in an attempt to block a plan they say protects the owners at their expense.
In a filing today in U.S. Bankruptcy Court in Delaware, Appaloosa Investment LP and funds affiliated with Oaktree Capital and Tennenbaum Capital asked a judge to appoint an examiner to investigate claims insiders “plundered” the unit. Insiders paid themselves hundreds of millions of dollars while moving assets out of the reach of second-lien debt holders, according to the filing.