Caesars Entertainment (CZR) Make See Stay Against New York Civil Suit Amid Bankruptcy Proceedings

Caesars Entertainment (Nasdaq: CZR) is expected to ask for a stay in a federal civil suit against the company's largest unit as it works to complete bankruptcy proceedings.

The NY Post noted late Monday that Caesars will make the request with its Chicago bankruptcy judge on Wednesday.

Last week, a New York district judge indicated she would like to rule on a case that Caesars' parent illegally removed a loan repayment guarantee against the unit before the current bankruptcy case concludes. The suit is seeking $750 million in damages.

Suits from Bank of Oklahoma and related Meehan Combs allege that Caesars approached half a group of bondholders and offered to buy their debt for 100 cents on the dollar when the bonds were trading for just 50 cents on the dollar. In return, the bondholders agreed to remove a guarantee against the parent company. The suits believe Caesars should have approached all debtholders with the offer.

Shares of Caesars are flat after dropping 16 percent on Monday's session.

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