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Tuesday, January 13, 2015

Creditors seek to put on a hold Caesars' looming bankruptcy, (NASDAQ: CZR)

Junior creditors of Caesars Entertainment Corp moved on Tuesday to put on hold the expected bankruptcy of the casino company's operating unit, which has said it could file for Chapter 11 as soon as Thursday.On Monday, junior noteholders filed an involuntary bankruptcy against the operating unit in the U.S. Bankruptcy Court in Wilmington, Delaware. The next day they asked the judge assigned to the involuntary case to stay any voluntary bankruptcy until the Delaware bankruptcy judge can rule on the proper court to hear the case.Caesars and its creditors are jostling for leverage as the largest U.S. casino company seeks to build support for its complex plan to cut the operating unit's debt to $8.6 billion from $18.4 billion.Earlier on Tuesday, a Caesars attorney told a Delaware state court judge the company will seek to extend to itself the legal shield of bankruptcy protection once its operating unit files for Chapter 11.

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, 1578020 shares of CZR exchange hands on a given day and today's volume is recorded at 1079682.