Caesars’ unit argues fresh bankruptcy shield will help bankruptcy case

The bankrupt operating unit of Caesars Entertainment Corp. asked a judge on Tuesday to extend a lawsuit shield for its parent company, which a financial adviser said is critical to making progress toward a settlement with holdout creditors.

Negotiations are advancing thanks to the prospect of more cash for creditors following the $4.4 billion sale of another Caesars affiliate last month and the possibility of financial contributions from Caesars’ private equity sponsors, Brendan Hayes, managing director of Millstein & Co said at a hearing.

But negotiations need to take place without the threat of judgments on bondholder litigation currently pending in New York and Delaware against the non-bankrupt Caesars parent, Hayes said.

Caesars is owned by Apollo Global Management LLC and TPG Capital Management LP, which formed the casino holding company through their 2008 buyout of Harrah’s.

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