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Caesars unit clears way to exit bankruptcy protection: court hearing
January 13, 2017 / 4:33 PM / 8 months ago

Caesars unit clears way to exit bankruptcy protection: court hearing

The marquee sign at Caesars Palace hotel is seen on the strip in Las Vegas, Nevada, U.S. February 16, 2011. REUTERS/Steve Marcus/File Photo

CHICAGO (Reuters) - Caesars Entertainment Corp’s (CZR.O) main operating unit has cleared the way for the casino operator to exit bankruptcy protection with an agreement that ends the last objection to its reorganization plan, lawyers told a U.S. judge on Friday.

The U.S. government’s bankruptcy watchdog had objected to the reorganization of Caesars Entertainment Operating Co Inc, the subsidiary that filed an $18 billion bankruptcy in 2015, because of legal protections for the non-bankrupt parent.

The objection by the U.S. Trustee was a cloud over next week’s trial to approve the Caesars unit’s plan to cut $10 billion of debt and emerge from its two-year Chapter 11 bankruptcy.

A last-minute deal with the U.S. Trustee removes that threat. The news sent shares of the Caesars parent up 2.8 percent at $8.895.

Details of the agreement would be filed later on Friday, Joe Graham, a lawyer for the bankrupt unit, said at a hearing at the U.S. Bankruptcy Court in Chicago.

Judge Benjamin Goldgar said that if the issues were resolved, “you can present an order and I’ll sign it.”

Reporting by Tracy Rucinski in Chicago, writing by Tom Hals in Wilmington, Delaware; editing by Grant McCool

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