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Monday, January 12, 2015

Hedge funds push for Caesars bankruptcy, seek examiner, (NASDAQ: CZR)

A group of hedge fund creditors of Caesars Entertainment Corp sought on Monday to force its main operating unit into bankruptcy and to appoint an independent examiner to investigate what they allege was the plundering of the company.The move follows Friday's announcement that the largest U.S. casino operator had the backing of senior noteholders for its plan to cut the debt of the operating unit, known as CEOC, to $8.6 billion from $18.4 billion.Under that plan, the hedge funds that filed the involuntary bankruptcy would be paid around 12 percent of what they are owed. They hold claims of $41.1 million, according to court papers.The funds alleged that insiders of Caesars "plundered" billions of dollars in choice assets from the operating unit, including Planet Hollywood and The Quad in Las Vegas. They asked the Delaware Bankruptcy Court to appoint an examiner to investigate deals involving the operating company dating back to 2010.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR fell by 4.12% or $-0.57/share to $13.26. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1640770 shares of CZR exchange hands on a given day and today's volume is recorded at 124149.