Caesars Entertainment is teetering on a fall into bankruptcy with every court decision shifting the balance toward demise or recovery. Last week a Chicago appeals court returned the issue to bankruptcy court when it ruled that two lower court judges used faulty reasoning when they denied Caesars request to halt a series lawsuits threatening the parent company. The bankruptcy judge must now determine whether the suits would negatively impact the bankruptcy before the cases can proceed.

Creditors of Caesars have sued the parent company alleging it violated federal laws when it decided not to carry through with a promise to help the operating company repay about $7 billion in debt. The operating company filed for bankruptcy less than six months later. The parent company abandoned the pledge without unanimous approval from bond holders. If the lawsuits are heard in a New York court, and the parent company loses, it would likely be forced into bankruptcy itself.

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