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Caesars unit close to deal with holdout creditor: lawyers

The marquee sign at Caesars Palace hotel is seen on the strip in Las Vegas, Nevada, U.S. February 16, 2011. REUTERS/Steve Marcus/File Photo

CHICAGO (Reuters) - The bankrupt operating unit of Caesars Entertainment Corp (CZR.O) is close to an agreement with a main holdout creditor, hedge fund Trilogy Capital Management, lawyers for the two parties said in an Illinois bankruptcy court on Wednesday.

Trilogy Capital Management is one of several hedge funds that had accused Caesars of scrapping a guarantee on the debt of its bankrupt subsidiary, Caesars Entertainment Operating Co Inc (CEOC), which filed for Chapter 11 protection in January 2015.

The Las Vegas-based casino group struck a $5 billion deal with most of its unit's creditors last month to resolve billions of dollars in legal claims and put an end to its costly bankruptcy.

Trilogy's claim is miniscule compared with the bankrupt unit's $18 billion in debt, but having the fund join the settlement deal would lessen the threat of a possible judgment against Caesars in a New York court.

(Reporting by Tracy Rucinski; Editing by Alan Crosby)