US judge gives Caesars another four months to control bankruptcy

Caesars Entertainment's bankrupt operating unit can keep exclusive control over its bankruptcy until March 15, a U.S. bankruptcy judge ruled on Wednesday, giving the casino group its second extension filing for chapter 11 protection in January.

The casino operating unit, CEOC, presented a new bankruptcy reorganization plan earlier this month which has the support of creditors holding $12 billion of debt, amounting to about two thirds of the total $18 billion debt pile.

The exclusivity was due to expire on Nov. 15 but CEOC asked for another four months to persuade junior bondholders to agree to the plan, which splits its business into an operating company and a real estate investment trust (REIT).

The company is also still waiting for a review of pre-bankruptcy dealings from an independent examiner. The report, initially due by December, is not likely to be ready until early next year.

"The motion is thoroughly persuasive and will be granted," said U.S. Bankruptcy Judge Benjamin Goldgar, citing the complexity of the case, the debtor's progress toward a consensual plan and the pending examiner's report.

Retaining control means that lower-ranking creditors, who have so far rejected Caesar's reorganization plan, cannot present rival exit proposals for the casino group, which was formed from the 2008 buyout of Harrah's.