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Monday, January 26, 2015

Caesars, creditors start unusual trial to pick bankruptcy court, (NASDAQ: CZR)

The operating unit of Caesars Entertainment Corp begins an unusual two-day trial on Monday to decide which of two bankruptcy courts will review its $10 billion debt-cutting plan. In some ways, the decision is not just about which judge, but which law will govern. Caesars Entertainment Operating Co Inc, which runs 38 casinos, finds itself in the rare situation of being in two bankruptcies in two different courts at the same time.A group of hedge fund creditors tried to force the company into bankruptcy in Wilmington, Delaware, earlier this month. The company responded by filing for bankruptcy in Chicago, and Monday's trial in Wilmington in front of Judge Kevin Gross will sort out where the case ends up.All U.S. bankruptcy courts use the same bankruptcy laws, but there are differences in how they are applied, which can shape how a company overhauls its finances."This case really underscores that," said David Skeel, who teaches bankruptcy at the University of Pennsylvania Law School.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR traded higher by 0.6% or $0.07/share to $11.66. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1482240 shares of CZR exchange hands on a given day and today's volume is recorded at 487392.