Caesars Entertainment Operating Co. Inc., the operating unit of Caesars Entertainment Corp., recently received another six months to draw up a proposed plan of reorganization to cut its debt. This will extend its "exclusivity period" – the time when only it can propose a plan without having to worry about creditors
submitting rival plans. The creditors had pushed for a shorter timeline, but U.S. Bankruptcy Judge Benjamin Goldgar sided with Caesars
, according to Reuters.
In issuing this ruling, which will give CEOC with more breathing room to determine the best way to cut debt, Judge Goldgar pointed to the magnitude of the case under consideration, the media outlet reported.
"The shear mass weight, volume and complication here is extraordinary," he stated while in a Chicago court, according to the news source.
Lawyers for Caesars had pointed to similar matters
when making their case for a longer timeline, stating in previous filings that because the case involves 173 business entities, a pending investigation being done by a court-appointed examiner, legal challenges and battling creditors, they will need more time, The Associated Press reported.
Because of the ruling, the Caesars operating unit has until Nov. 15, 2015, to submit its reorganization plan, according to the news source. CEOC has a deadline of Jan. 15, 2016, to obtain agreement from creditors.
Thus far, CEOC has suggested a plan that would divide the unit into a real estate investment trust and a casino operator, Reuters reported. Because Wall Street frequently perceives REITs as having greater worth, advocates of the plan will create value for creditors.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.