USA: A U.S. bankruptcy judge said on Wednesday he must look deeper into whether he has the authority to halt bondholder lawsuits against Caesars Entertainment Corp (CZR.O) in New York and Delaware given that proceedings have already begun. The Caesars unit has yet to secure support from first-lien banks or its junior creditors for its reorganization plan. Caesars has the right to terminate its funding agreement by June 22 if the judge does not halt the lawsuits by June 15, the unit's lawyers said at the hearing. An independent examiner concluded in March that Caesars and its private equity sponsors, Apollo Global Management LLC (APO.N) and TPG Capital [TPG.UL], could face $5 billion in potential damages from the unit's bankruptcy. A bankruptcy filing by the parent would cost another $200 million a year in expenses that would have priority over creditors' claims, he added.

Source: Standard Digital June 08, 2016 21:08 UTC