Caesars shares plummet as it faces $11 billion in lawsuits
On Friday, U.S. Bankruptcy Judge Benjamin Goldgar in Chicago declined to renew a stay on litigation by bondholders who allege Caesars reneged on guarantees of bonds issued by unit Caesars Entertainment Operating Co. The operating unit filed for bankruptcy in January 2015 with $18 billion in debt.
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Shares of the Nevada-based gaming company were trading at $6.28 by 8:58 a.m., recovering from a year low of $5.39 hit in initial trading.
The Caesars unit was asking Goldgar to extend the protection against the lawsuits, which has been in effect since February. The operating unit said the lawsuits threaten a multibillion-dollar contribution that its parent has agreed to make to the operating unit's reorganization plan.
Caesars filed an appeal against Goldgar's decision on Friday. The current injunction expires on Monday. On Tuesday, Caesars faces a potential ruling in New York.