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The Wall Street Journal: Judge denies Caesars litigation reprieve in bondholder battle

Caesars Entertainment Corp. must face bondholders in a multibillion-dollar legal battle that will play out in the coming days, a federal judge ruled Friday.

Caesars’ bankrupt operating unit has previously been able to protect its parent company from bondholder litigation demanding that Caesars CZR, -0.40% honor more than $11 billion in guarantees of the unit’s debt.

But Judge A. Benjamin Goldgar of the U.S. Bankruptcy Court in Chicago, who is overseeing the operating unit’s chapter 11 case, said he wouldn’t renew the lawsuit shield when it expires Monday.

Goldgar’s ruling paves the way for courts in New York and Delaware to rule, in a matter of weeks or even days, on the question of whether Caesars must honor the debt guarantees.

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