Bloomberg is reporting that a U.S. Bankruptcy Court judge in Chicago declined a motion to handle a case involving the restructuring of the main operating unit of Caesars.
The Delaware bankruptcy court also declined to halt the case in the First State and ordered the parties to meet again early next month.
The main operating unit of Caesars filed for Chapter 11 in Chicago.
A group of investors earlier this week filed in Delaware in hopes of forcing a Chapter 11 filing in Wilmington in an effort to get a better deal from the debt-laden company.
The restructuring plan has received support from more than 80 percent of first-lien noteholders, is intended cut the long-term debt and annual interest payments.
Caesars hopes to cut $10 billion from its debt burden by separating the company into casino management and real estate investment trust operations.
Bloomberg earlier reported investors filing the action in Wilmington want to determine whether the assets were “plundered.” The Chicago filing may an effort to avoid the issue of Caesars filing in a “friendly” state where it has a large employment base.
Investors that were not part agreement among 80 percent of the debt holders filed to force a Chapter 11 case in Delaware.
Caesars has a concentration of casinos in Nevada and New Jersey as well as Chester, Pa. It recently closed and sold the Showboat casino in Atlantic City.
Caesars underwent a private buyout several years ago ,However, the deal left the gaming company with a $23 billion debt burden that hobbled the company, even when the company raised money through a stock offering.
The gaming business has staged a slow recovery in Las Vegas, but has struggled in Atlantic City. The company is building a $125 million convention complex at its waterfront Harrah’s resort in Atlantic City.
Unlike competitors, like Las Vegas Sands (The Venetian) and Wynn, the company did not gain a presence in the lucrative gambling hotbed of Macau, a part of China.
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