Partner Seth Lieberman, a member of the Bankruptcy, Restructuring and Creditor's Rights Group, spoke to Law360 for the article, “Unhappy Caesars Bondholders Find Ally In EDMC Judge.”

Creditors furious with Caesars Entertainment Corp.'s financial maneuvering prior to their $18 billion debt restructuring suddenly find themselves in a stronger position due to a separate ruling on a similar breach of payment rights. The ruling, by U.S. District Judge Katherine Polk Failla, found that Education Management Corp. could not reshuffle its corporate structure to erase a guarantee on a subsidiary's debt without consent from the plaintiff, Marblegate Asset Management LLC.

While the two situations are in many ways distinguishable, Judge Failla's ruling is ammunition as investors confront the looming bankruptcy of CEOC, and Lieberman said the noteholders will be much more reluctant to cut a deal that would bring them on board with the company's preferred course. “I definitely think this could be a potential game changer in the Caesars restructuring, to the extent that these holders are able to somehow monetize their claims."

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