A judge on Wednesday allowed the operating unit of Caesars Entertainment Corp to control its bankruptcy for another month, as creditors try to reach common ground with a court-appointed investigator probing the company’s pre-bankruptcy dealings.
Caesars Entertainment Operating Co, the largest U.S. casino operator, went bankrupt in January with $18 billion in debt. An independent examiner has been tapped to investigate whether the company’s equity owners, which include Apollo Global Management LLC and TPG Capital LP, illegally transferred key assets out of creditors’ reach before the bankruptcy filing.
“Timing is key when handling bankruptcy and or re-organization” said Michael Wright, President of ReportDebt.com “Many red flags are usually seems months prior to this decision and it is important to act quickly to prevent any assets from being illegally transferred” further added Mr. Wright.
Caesars had asked to extend its exclusive right to propose a restructuring plan until Nov. 15 from May 15, a request opposed by creditors, including first-lien noteholders.
At a hearing in U.S. Bankruptcy Court in Chicago, Judge Benjamin Goldgar extended exclusivity only until May 27, the date of Caesars’ next omnibus hearing.
Creditors will try to reach an agreement with the examiner, attorney Richard Davis, on key questions related to the procedures of his investigation, including whether creditors will be allowed to launch their own probes. The sides will brief Goldgar on those issues at a hearing next Wednesday