Caesars Entertainment Unit To Reportedly File For Bankruptcy

(RTTNews) - Casino company Caesars Entertainment Corp.'s (CZR) largest unit may file for bankruptcy protection as early as Thursday, reports said.

It was reported in December 2014 that Caesars reached a tentative deal with senior bondholders on a debt-restructuring plan for its largest unit, Caesars Entertainment Operating Co.

The agreement was said to move Caesars closer to winning enough creditor support for a plan that would put the unit into bankruptcy protection early in 2015 and convert it into a real-estate investment trust.

Caesars was then said to be trying to get enough creditors to back the unit's restructuring plan before a mid-January interest-payment deadline.

The report said that the unit has roughly $18.4 billion in debt, much of which is held by hedge funds that buy up the debt of troubled companies.

The operating company is now said to be planning to file for bankruptcy by January 20 in an effort to reduce its debt to $8.6 billion.

While the unit's casinos and hotels will function as usual, the Chapter 11 filing will follow protracted negotiations with creditors.

CZR closed down 4.6 percent on Tuesday at $12.63, and slid just over 1 percent in the extended trade.