Bankrupt Caesars unit gets court’s OK to use cash, for now
LAS VEGAS (AP) — A federal judge in Chicago ruled Wednesday that a bankrupt division of Caesars Entertainment Corp. can tap some of the $847 million in cash it has on hand for at least five weeks.
Judge Benjamin Goldgar said Caesars Entertainment Operating Co. could access its cash in the interim despite objections from some of the company’s creditors.
A budget the company submitted to the court indicated it plans to spend $334 million through April 3. The documents showed revenue is expected to offset spending and leave the company with $834 million in cash at the end of five weeks.
Goldgar scheduled a hearing to reconsider the motion on March 26.
Several other motions, including requests for an examiner to investigate the company’s pre-bankruptcy transactions, were delayed until March 25.
The company was also seeking to get out from under several contracts that would save it $675,000 a month.
Among the contracts is a suite for Kansas City Chiefs football games, a sponsorship with the New York Mets, an advertising agreement with The Forum in Los Angeles, and deals with a tour bus operator to support its Horseshoe Bossier City casino in Louisiana and a nearby Springhill Suites hotel operator where the company regularly reserved a block of rooms.
Documents regarding the court’s decision on the contracts were not immediately available.
The judge also decided to allow two pending legal cases involving Caesars Entertainment Operating Co. to proceed, although any judgment against the company would not be enforced.
A wrongful death case brought by the family of Bradley Flamm, who was killed by a former friend after leaving work at the Caesars Palace Forum Shops in 2009, can proceed but no claim can be made against the company or its insurance carrier.
Instead, Caesars has agreed to cooperate during mediation efforts and supply witnesses when necessary in the Flamm estate’s ongoing lawsuit against U.S. Security and Lexington Insurance Company, the insurance carrier for mall operator Simon Property Group Inc.