Lawsuits against Caesars Entertainment to proceed while unit is in bankruptcy, judge rules

Markets Associated Press

A Chicago bankruptcy judge says he won't stop pending lawsuits against Caesars Entertainment Corp. while its debt-heavy subsidiary is in bankruptcy.

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Judge Benjamin Goldgar ruled Wednesday that the casino giant isn't immune to litigation unlike its Caesars Entertainment Operation Co. unit which filed for bankruptcy in mid-January in hopes of shedding $10 billion worth of debt.

Caesars Entertainment Corp. owns and operates 50 casino-hotels in five countries and employs 68,000 people. The company is counting on using its money to bail out its bankrupt subsidiary in a plan pitched to creditors. Company attorneys have argued that an adverse ruling in litigation filed by creditors claiming some $7 billion would be dire to Caesars' finances rendering its subsidiary's bankruptcy plan moot.

Caesars' stock dropped 41 percent to $4.76 a share Wednesday.