The bankrupt operating unit of Caesars Entertainment Corp will soon ask a U.S. judge to shield its parent from $12 billion of lawsuits to facilitate a debt-cutting rescue deal, but approval could set a bad precedent for creditors.
Bankruptcy expert Professor Charles Tabb says, "Granting a stay would offer the benefit of bankruptcy protection without actually filing for Chapter 11 and puts huge pressure on everyone to work out a deal. It could create a bad precedent."
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