Caesars Entertainment stock hits 52-week low

The stock price of Caesars Entertainment Corp. sank to a 52-week low Friday as investors worried about the outcome of legal proceedings in federal bankruptcy court could leave the casino operator on the hook for more than $1 billion in debt obligations.

A decision against the company could force Caesars to follow its largest operating division into bankruptcy protection.

Shares of Caesars closed at $6.41 on Nasdaq on Friday, down 75 cents, or 10.47 percent. Year to date, shares of Caesars have declined more than 53 percent, including a 30 percent drop over the past three months.

Caesars shares dropped to a 52-week low of $5.95 Friday before recovering.

Caesars placed Caesars Entertainment Operating Co., into a prepackaged Chapter 11 bankruptcy in January.

On Wednesday, a hearing began in Chicago where Caesars is seeking to halt bankruptcy litigation against the company that could derail restructuring.

Creditors want to advance four separate lawsuits against Caesars over the transfer of assets to its operating unit.

Last week, a federal judge in New York handed a small victory to creditors seeking to collect $750 million from the operating division, saying the trustee representing operating division creditors can ask her to rule on parts of the lawsuit without first holding a trial.

A favorable ruling could force Caesars Entertainment into bankruptcy because of its liabilities.

Caesars Entertainment has a gaming industry high $22.8 billion in long-term debt, of which $18.4 billion is attached to the operating division.