Caesars bankruptcy gets more complicated • 3:23 AM
Yoel Minkoff, SA News Editor
- A judge dealt Caesars Entertainment’s (NASDAQ:CZR) bankruptcy reorganization a possible fatal blow in ruling that the company violated federal law when it shuffled assets and refinanced debt to protect itself from lower-ranking creditors, Bloomberg reports.
- U.S. District Judge Shira Scheindlin said noteholders' allegations about the transfer of valuable properties away from the unit in August - and the parent’s removal of guarantees for creditors - amount to a violation of the federal Trust Indenture Act of 1939.
- Caesars' operating unit filed for Chapter 11 on Thursday, three days after second-lien noteholders filed an involuntary bankruptcy petition in Delaware.