WILMINGTON, Del. – A court battle is underway over whether the bankruptcy case of casino giant Caesars Entertainment Corp. should proceed in Delaware or in Illinois.
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Monday's hearing in Wilmington, Delaware, pits Caesars against major creditor groups who want the case in Delaware. That's where the creditors filed an involuntary bankruptcy petition shortly before Caesars' operating unit filed its Chapter 11 case in Chicago.
Creditor attorneys allege that one reason Caesars filed in Illinois is because it will be easier there to shield company officials from lawsuits over their pre-bankruptcy conduct, which creditors say included improper transfers to shield the operating unit's assets from creditors.
Caesars notes that it owns several Midwest properties and says Illinois is the best place to try to fashion a consensual restructuring that maximizes value for all stakeholders.