Caesars in Temporary ‘Debtor Heaven’ With Involuntary Bankruptcy
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Unhappy creditors of Caesars Entertainment Corp., seeking to put the brakes on its planned reorganization, may have temporarily given the company more freedom to operate by pushing its main unit into an involuntary bankruptcy.
Because the Chapter 11 petition filed today in Delaware wasn’t voluntary, the casino company doesn’t face immediate restrictions on selling or transferring assets, as it might otherwise under the U.S. Bankruptcy Code. Nor does Caesars need a bankruptcy judge’s permission to make other major decisions, said Bruce Grohsgal, a visiting professor of bankruptcy law at Widener University School of Law in Wilmington, Delaware.