Caesars to Be Investigated, Asks Court to Stop Lawsuits
A bankruptcy judge ordered that an independent examiner investigate Caesars Entertainment for transactions the company conducted prior to declaring Chapter 11 bankruptcy for its operating division early this year, according to Reuters. Over the past few years, the parent company had transferred lucrative assets -- such as its online gaming division, the Octavius Tower, The Cromwell and The Quad, all in Las Vegas -- away from the operating division. Debtors have sought to file suits against the parent company, accusing Caesars of making the lucrative assets unavailable in preparation for the bankruptcy filing. Caesars Entertainment claims the transactions were all conducted for a fair market value. Caesars Entertainment had already asked the bankruptcy judge to halt the lawsuits from debtors, noting they will interfere with the reorganization plan, and is asking to scale back the scope of the examiner's efforts, claiming the investigation costs are likely to exceed the court's estimated budget.