Court Has Power to Halt Suits Against Caesars Parent

The Seventh Circuit has handed down another twist in the “immensely complicated” bankruptcy of Caesars Entertainment Operating Company Inc. (Caesars Entm’t Operating Co. v. BOKF, N.A. (In re Caesars Entm’t Operating Co.), 2015 BL 422741, 7th Cir., 15-3259, 12/23/15).

Judge Richard Posner said the lower courts got it wrong when they held that the bankruptcy court didn’t have the power to stay lawsuits in New York and Delaware where some $12 billion is at stake.

The Caesars bankruptcy has been mired in controversy centered on whether the parent company, Caesars Entertainment Corp., raided the assets of its now ...