Caesars Judge Sets Rules for $468 Million Bankruptcy Date FightSteven Church
Caesars Entertainment Corp.’s $468 million bankruptcy dispute will go to trial in August as the judge overseeing the case said it’s probably irrelevant whether the casino company or its creditors acted in bad faith when they filed dueling petitions in January.
Whether Caesars paid its debts as they came due is the main question, U.S. Bankruptcy Judge Benjamin Goldgar said during a hearing Wednesday in Chicago.
Goldgar must decide if the bankruptcy started Jan. 15 when the company filed its case or three days earlier when lower-ranking creditors filed an involuntary petition. Creditors can challenge a claim by senior lenders to $468 million in cash if they win.
Credit Suisse Group AG, acting as an agent for senior lenders that loaned Caesars billions of dollars, sued lower-ranking creditors on Tuesday claiming they violated lender agreements. The suit is one of several related to restructurings and refinancings by Caesars.
The case is In Re Caesars Entertainment Operating Co. Inc., 15-bk-01145, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).