NEW YORK (TheStreet) -- Shares of Caesars Entertainment Corp. (CZR) are higher by 22.98% to $13.70 in late morning trading on Wednesday, as sources tell Bloomberg the casino operator has reached an agreement with its senior creditors regarding the company's outlined debt restructuring plan.
The deal includes a prearranged bankruptcy for Caesars' largest unit as early as January 14. By placing its Caesars Entertainment Operating Co. segment into Chapter 11, it will help the company get a handle on the $22.9 billion in debt it acquired six years ago, during one of the largest leveraged buyouts ever, Bloomberg added.
By setting a mid-January filing date the company gives itself enough time to assure its senior creditors that they could receive the cash Caesars promised in October, without having to deal with the challenges of groups fighting during a bankruptcy proceeding, Bloomberg noted.
"They have to make first-lien creditors believe it's going to be really safe when they file. The creditors have a lot of control here. If they can't get first-lien creditors to go along, they have a real problem," a Columbia University Law School professor told Bloomberg.
Separately, TheStreet Ratings team rates CAESARS ENTERTAINMENT CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: