Embattled Caesars Entertainment Corporation (CEC) has been granted a temporary reprieve by Chicago bankruptcy Judge A. Benjamin Goldgar, who has halted bondholder legal proceedings against the company.
Judge Goldgar, heard the plea of Caesars bankrupt unit ‘Caesars Entertainment Operating Co’ (COEC) which stated that lawsuits seeking $11 billion compensation against CEC would finish any chance of the company restructuring its debt repayments.
CEC’s legal reprieve will be granted until 29 August, with Judge Goldgar stating that the chances of a further extension would be ‘slim’.
Bondholders had moved to sue CEC in New York and Delaware courts, claiming that the company had reneged on guarantees filed at COEC unit bankruptcy in January 2015.
Seeking to smooth its relations with creditors, in May CEC governance pledged $4 billion in cash and corporate debt as a repayment installment of COEC + $20 billion debt burden.
The repayment figure was widely rejected by creditors who claim that CEC should make further concessions towards eliminating COEC debt.
CEC governance is further accused of hiding valuable corporate assets which could have been sold-off as part of the company’s debt restructure.
CEC representatives stated that the company was pleased with Judge Goldgar’s decision to halt legal proceedings, which would have distracted the company from its restructuring plans.