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Thursday, March 12, 2015

Judge orders examiner in Caesars' affiliate bankruptcy, (NMS: CZR)

A U.S. bankruptcy judge on Thursday ordered an independent examiner to investigate transactions by the operating unit of Caesars Entertainment Corp, which filed for Chapter 11 this year.U.S. Bankruptcy Judge Benjamin Goldgar directed the examiner to investigate "any apparent self-dealing or conflicts of interest involving the debtors or their affiliates."Creditors have alleged that the operating unit is unable to pay its debts because the parent company looted it for the benefit of its controlling private equity backers, Apollo Global Management and TPG Capital Management.Court papers said the examiner, to be appointed by the U.S. Trustee, will be tasked with analyzing the propriety of a number of intercompany deals that are at the heart of the bankruptcy of Caesars Entertainment Operating Co, or CEOC.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR traded higher by 1.35% or $0.13/share to $9.74. In the past year, the shares have traded as low as $8.51 and as high as $25.13. On average, 1089310 shares of CZR exchange hands on a given day and today's volume is recorded at 474842.