NEW YORK (TheStreet) -- Shares of Caesars Entertainment (CZR) are falling by 8.24% to $6.57 in mid-afternoon trading on Friday, as concerns mount that lawsuits filed against the casino company will hinder the restructuring efforts of its bankrupt Caesars Entertainment Operating Co. subsidiary.
Thursday was day two of a trial to determine whether four separate lawsuits filed against Caesars Entertainment by some of its creditors can move forward.
The market would become more confident if it were aware that Caesars Entertainment wasn't going to be responsible for billions of dollars relating to pre-bankruptcy asset transfers between Caesars Entertainment and CEOC, Randall Eisenberg, a partner at the restructuring firm AlixPartners said, according to The Wall Street Journal.
CEOC's current restructuring plan is dependent on a $1.5 billion contribution from Caesars Entertainment, but that money wouldn't be available if the parent company lost the suits.
Separately, TheStreet Ratings team rates CAESARS ENTERTAINMENT CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAESARS ENTERTAINMENT CORP (CZR) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk."