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