Casino giant Caesars' largest unit files for bankruptcy

Maybe the house doesn't always win. On Thursday, Caesars Entertainment Corp., the largest casino company in the U.S., filed to put its operating unit under Chapter 11 bankruptcy protection as part of its plan to cut about $10 billion of its $18.4 billion in debt. Much of that debt is from Caesars' $30 billion leveraged bet on Harrah's Entertainment in 2008.

Most of Caesars' senior bondholders have signed on to the bankruptcy plan, which will spilt its largest unit into a casino company and real estate investment trust, but junior creditors are up in arms, alleging the bankruptcy follows years of "unimaginably brazen corporate looting and abuse." The junior noteholders are trying to force Caesars into involuntary bankruptcy, hoping to recover more than 10 cents on every dollar.

The bankrupt unit, Caesars Entertainment Operating Co., owns or operates a portfolio of 38 casino and resort properties in 14 U.S. states plus four other countries. All Caesars casinos and resorts will remain open during the bankruptcy reorganization, the company says.

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