NEW YORK ( TheStreet) - Caesars Entertainment (CZR - Get Report) says it's working to improve its capital structure but despite moves to cut costs, buy back debt and pursue a spin-off, Caesars' $23.7 billion debt load is still the elephant in the room and could push the casino operator into Chapter 11.
For the moment, concerns about the company's cash flow sent shares dropping 8% to $15.50. Of course, Caesar shareholders have enjoyed a nice run: the shares are still up 124% this year.
It's not just the size of the Las Vegas-based, private equity-backed casino operator's debt burden that is worrisome; substantial maturities in 2015 and 2016 are also a cause for concern.
However, Caesars CEO Gary Loveman promised in a July 29 second-quarter earnings call that he is "acting aggressively to improve the company's capital structure."But debt investors aren't too optimistic. One hedge fund invested in Caesars' debt, which asked not to be named, said, "They would need a meteor to destroy the earth, or they'd need
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