Caesars' shares plunge as judge allows creditor suits

Reuters with CNBC
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A judge refused on Wednesday to halt creditor suits against Caesars Entertainment, and the company's shares briefly plunged about 60 percent on the day—to a low of $3.30.

Caesars must defend creditor lawsuits claiming up to $11 billion after U.S. Bankruptcy Judge Benjamin Goldgar denied a request to put those cases on hold while the casino company's operating unit remains in bankruptcy.

Following its initial dip after the ruling, the company's stock pared some of those losses to a price above $5 (still a more than 30 percent loss on the day).

Goldgar said on Wednesday he would deny Caesars' request to stay the creditor lawsuits in New York and Delaware courts. Caesars has said it may join its operating unit in bankruptcy if those lawsuits were not put on hold.

Creditors, including affiliates of Centerbridge Partners, Oaktree Capital Management and Appaloosa Management, have argued their cases are necessary to determine if the operating unit's debts are guaranteed by Caesars.

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—CNBC's Everett Rosenfeld contributed to this report.