Creditors attempt to force Caesars division into bankruptcy

AP News
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Posted: Jan 13, 2015 4:05 PM

LAS VEGAS (AP) — Creditors who say a division of Caesars Entertainment Corp. owes them $41 million collectively are attempting to push the casino giant's operating company into bankruptcy ahead of its own expected filing.

Appaloosa Investment Limited Partnership I, Special Value Expansion Fund LLC and OCM Opportunities Fund VI LP filed the petition Monday in Delaware to force Caesars Entertainment Operating Co. into Chapter 11 bankruptcy. A judge would need to OK it.

Caesars says in a statement that the three creditors' claims lack merit and the petition is a "transparent attempt to thwart" the company's own bankruptcy plan, which it may file as early as Thursday.

The casino company has sued Appaloosa and Special Value Expansion in New York Supreme Court.