The lenders, led by Appaloosa Investment LP, filed an involuntary Chapter 11 bankruptcy against Caesars Entertainment Operating Co. on Monday in Delaware. The move is an attempt to stop a restructuring deal between Caesars and its senior creditors.
Last week, Caesars announced 60 percent support for a plan that would put CEOC into Chapter 11 bankruptcy protection voluntarily and turn it into a real estate investment trust. The move would eliminate almost $10 billion of the business unit’s $18.4 billion of debt.
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