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Wednesday, January 28, 2015

Judge says Caesars' bankruptcy to proceed in Chicago, (NASDAQ: CZR)

A U.S. bankruptcy judge said on Wednesday he would not transfer the bankruptcy filing of Caesars Entertainment Corp's operating unit to Delaware from Chicago, a victory for the company's private equity backers.Hedge funds creditors wanted the casino company's $10 billion debt-cutting plan reviewed under the legal standards of the Delaware court. They feared the standards of the Chicago court, where Caesars filed on Jan. 15, would be more favorable to controlling shareholders Apollo Global Management and TPG Capital.The ruling resolves Caesars' unusual situation of being in two bankruptcies at once, which began with what is known as an involuntary bankruptcy filing in Wilmington on Jan. 12 by Appaloosa Management and two other hedge funds. Three days later, the operator of 38 casinos filed its own Chapter 11 in Chicago."The court finds the interest of justice narrowly supports ... proceeding in the Illinois court," said Kevin Gross, a U.S. Bankruptcy Judge in Delaware. He said if the bankruptcy proceeded in Delaware it would set a bad precedent by allowing creditors to upset reorganization plans.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR traded higher by 5.14% or $0.6/share to $12.27. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1478760 shares of CZR exchange hands on a given day and today's volume is recorded at 385377.