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Judge rules Caesars bankruptcy case will be heard in Illinois, not Delaware

A federal judge in Delaware ruled Wednesday that the Chapter 11 case of casino giant Caesars Entertainment Corp. will proceed in Illinois, denying a motion by several creditor groups who wanted the case heard in Delaware. The ruling by U.S. Bankruptcy Judge Kevin Gross was a victory for Caesars, whose operating unit filed for bankruptcy protection in Chicago earlier this month just days after the creditors groups filed a petition in Delaware to force the company into involuntary bankruptcy. Creditor attorneys had argued that Caesars filed in Illinois partly because it will be easier there to shield company officials from lawsuits over what they allege were improper transfers to shield the operating unit’s assets from creditors. Caesars attorneys contended that under bankruptcy law, Gross should defer to the company’s choice of Illinois as the best place to try to fashion a consensual plan maximizing value for all stakeholders. Caesars Entertainment partly owns Horseshoe Casino Baltimore.

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