Caesars' parent faces bankruptcy after ruling

Chicago

CAESARS Entertainment Corp may be closer to joining its operating unit in bankruptcy after a federal judge refused to protect the casino company from creditor lawsuits seeking up to US$11 billion, sending its stock plummeting.

US Bankruptcy Judge Benjamin Goldgar in Chicago denied a Caesars request to stay four lawsuits by hedge fund creditors who are owed billions of dollars by Caesars' operating unit, Caesars Entertainment Operating Co, Inc. The operating unit filed for Chapter 11 bankruptcy this year and the hedge funds allege Caesars guaranteed its debts. Caesars has said that the lawsuits are without merit.