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Tuesday, January 13, 2015

Caesars wants legal shield when operating unit seeks bankruptcy, (NASDAQ: CZR)

Caesars Entertainment Corp will seek to give itself the legal shield of bankruptcy once its operating unit files for Chapter 11 in the coming days, a lawyer for the company's operating unit told a judge on Tuesday. But a lawyer for creditors who are suing Caesars called the plan "extraordinary" because the parent company will ask for the benefits of bankruptcy without actually filing for Chapter 11.The operating company has said it plans to file for bankruptcy by Jan. 20 to cut its debt to $8.6 billion from $18.4 billion.Its restructuring plan has the support of senior noteholders but other creditors have been trying to block the overhaul, including junior noteholders who sued the largest U.S. casino company and various subsidiaries in a Delaware court in August.A bankruptcy judge will be asked to put on hold the Delaware lawsuit against all defendants once Caesars Entertainment Operating Co Inc, or CEOC, files for Chapter 11, Eric Seiler, an attorney for CEOC, told a court hearing Tuesday.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR fell by 4.68% or $-0.62/share to $12.63. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1595740 shares of CZR exchange hands on a given day and today's volume is recorded at 1079482.