Unhappy Caesars Bondholders Find Ally In EDMC Judge

Law360, New York (January 6, 2015, 8:44 PM EST) -- Creditors furious with Caesars Entertainment Corp.'s financial maneuvering ahead of an $18 billion debt restructuring find themselves in a stronger position now that an Education Management Corp. noteholder has successfully alleged a similar breach of payment rights.

As Caesars races to hammer out a deal to restructure its Caesars Entertainment Operating Co., a group of investors are claiming in New York federal court that the company’s recent moves have all but ensured they will be wiped out.

On Monday, the plaintiffs filed a letter reiterating that Caesars' elimination of a guarantee on their debts violated the Trust Indenture Act, which broadly...

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