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Wednesday, March 18, 2015

Caesars warns creditor lawsuits may endanger "going concern" status, (NMS: CZR)

Casino company Caesars Entertainment Corp, whose operating unit is in bankruptcy, warned on Monday that the litigation stemming from its restructuring efforts could hamper its ability to continue operating as a going concern. Creditors have brought numerous lawsuits alleging fraud over transfers of assets out of the operating unit, Caesars Entertainment Operating Company.As the unit struggled to overhaul its operations prior to filing for bankruptcy in January, it transferred a number of its most valuable properties and casinos to affiliates of the parent company.Creditors have alleged the moves were illegal efforts by the parent company to put the assets beyond their reach.The "material uncertainty" over the litigation proceedings "raises substantial doubt about the company's ability to continue as a going concern," the largest U.S. casino company said in a regulatory filing on Monday, its first such warning.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR fell by 2.39% or $-0.23/share to $9.39. In the past year, the shares have traded as low as $8.51 and as high as $25.13. On average, 938845 shares of CZR exchange hands on a given day and today's volume is recorded at 1077095.