Caesars Entertainment (CZR) shares were down 17% Monday afternoon after a U.S. Bankruptcy Court ruled that the company will not be shielded from $11 billion in lawsuits by bondholders. On Friday, a judge ruled that extending the ban on the lawsuits would not help the casino operator settle with bondholders.
Last week, Caesars asked majority shareholders Apollo Global Management (APO) and TPG Capital for $990 million to ease debts. The two private-equity firms declined the request.
Macrocure (MCUR) shares were up 85% Monday afternoon after the Israel-based immune-oncology biotech company announced that it signed a definitive merger agreement with Leap Therapeutics. Macrocure will become a subsidiary of Leap and Leap will become a public company in a reverse merger. Leap CEO Christopher Mirabelli said that he expects the combined company to achieve "substantial clinical milestones" over the next two years.
Meanwhile, shares of Kapstone Paper (KS) , a Northbrook, Ill.-based paper and packaging company, increased roughly 2.5% after analysts with Bank of America Merrill Lynch upgraded the company's stock to Neutral from Underperform.
BofA analyst John Babcock said fundamentals in the containerboard markets are improving, noting the gains could be reflected in Kapstone's bottom line. Kapstone shares are now up about 24% so far in August.
Finally, Elite Pharmaceuticals (ELTP) shares rose 15% after the company filed an Abbreviated New Drug Application (ANDA) with the U.S. Food and Drug Administration for a generic version of Percocet, a popular medicine used to treat moderate and severe pain.
Elite said that it is committed to developing a range of opioid abuse-deterrent products and it expects to file another generic opioid product this year. More than three million Elite shares have been traded today, vs. the stocks 2.1 million share daily average.