Defaults

Gambling giant Caesars Entertainment Corp. put its largest unit into Chapter 11 protection in Chicago early Thursday morning, leaving it to a judge to settle the bitter dispute among the company’s creditors and the investment firms whose buyout left the unit with $18.4 billion in debt, The Wall Street Journal reports. 

While restructuring professionals have proposed some interesting changes to the bankruptcy code, it’s also striking what their 370-page report leaves out. Here are some hot topics in the bankruptcy world that wouldn’t be affected:

Distressed-Debt Trading

NII Holdings Inc. on Monday announced a restructuring deal that would put the Latin American Nextel carrier in the hands of its bondholders. Read Joe Checkler’s Daily Bankruptcy Review story in The Wall Street Journal.

Mutual fund giant Franklin Templeton Investments is appealing a judge’s decision to allow the city of Stockton, Calif., to exit bankruptcy under a plan that pays Franklin-managed funds a fraction of the $37 million owed them but makes full payments for the city’s pensions. Read the Daily Bankruptcy Review story in The Wall Street Journal.

As cash quickly runs out to keep Atlantic City’s Trump Taj Mahal Casino Resort open, a bankruptcy judge refused to sign off on the outlines of a bankruptcy-exit plan for owner Trump Enterta