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Bloomberg: Caesars Bondholders Denied Quick Ruling on $7B Pledge

August 28, 2015, 07:20 AM
Filed Under: Bankruptcy

Bloomberg reports Caesars Entertainment Corp. won a court ruling that gives it breathing room to try to negotiate an end to a bondholder lawsuit that could force the gambling company into bankruptcy alongside its main operating unit.

A federal judge denied a bondholder request for an immediate ruling that Caesars broke federal law when it reneged on a promise to help repay $7 billion owed by the operating subsidiary, according to the Bloomberg article.

Caesars had said it might file for bankruptcy should the judge rule that it must stand behind the debt guarantee. The company dropped the guarantee as it tried to restructure debts of the unit, which filed bankruptcy in January.

The Bloomberg article notes that the judge’s interpretation of the law, if upheld on a possible appeal, could make it harder for other companies to restructure debt outside of bankruptcy court.

To view the entire Bloomberg story, click here.

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