Caesars’ operating arm can move towards bankruptcy exit vote

Caesars Entertainment Operating Co (CEOC) has been told it can begin seeking creditor votes for a plan to exit its $18 billion (€16.4 billion) bankruptcy.

Judge Benjamin Goldgar, sitting at the US Bankruptcy Court in Chicago, ruled that a confirmation hearing will begin on January 17, 2017, some two years after the company filed for Chapter 11 protection.

CEOC has been rocked by creditor accusations that its non-bankrupt parent company looted its operating unit of choice hotel and casino assets before its January 2015 filing.

Caesars has denied wrongdoing, and offered to contribute around $4 billion to CEOC's bankruptcy plan to settle the allegations after an independent examiner said it could be liable for up to $5.1 billion.

According to the Reuters news agency CEOC lawyers said that they had made “significant progress” in obtaining pledges of support for the reorganisation plan, which will slash $10 billion of debt and split the unit into a new operating company and a real estate investment trust (REIT).

Related article: Caesars proposes revised $4bn bankruptcy plan