GEORGETOWN, Del. (AP) - A chancery court judge is weighing whether to dismiss a lawsuit filed against Caesars Entertainment Corp. by bondholders accusing the gambling company of fraudulently transferring assets of its debt-laden operating unit to shield them from creditors.
Lawyers for Caesar's argued Friday that the second-lien bondholders are bound by an intercreditor agreement to bring such claims in New York, where the company is involved in related litigation.
But attorneys for the bondholders say the provisions of the intercreditor agreement do not apply to their lawsuit against the company, and that the asset transfers involved entities formed in Delaware and controlled by Caesars officials in Nevada.
The judge declined to issue an immediate ruling Friday afternoon, saying the issues involved are complex, but that he hoped to render a decision promptly.