NEW YORK (TheStreet) -- Shares of Caesars Entertainment Corp. (CZR) are higher by 18.07% to $16.14 in mid-morning trading on Thursday, as the stock continues yesterday's gains, following reports it is close to reaching a deal with its senior creditors regarding a debt restructuring plan.
The casino operator took on a $22.9 billion debt six years ago, as part of one of the largest leveraged buyouts ever, Bloomberg reported.
The plan, currently under negotiation, would involve a prearranged bankruptcy filing for Caesars' largest business, Caesars Entertainment Operating Co. Proceedings for the Chapter 11 filing would begin as soon as January 14, Bloomberg added.
Must Read: Warren Buffett's 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
By filing in mid-January Caesars would be giving itself enough time to reassure its senior creditors that they would receive the cash promised to them by the company in October, eliminating any challenges by "warring groups" during the bankruptcy proceedings, Bloomberg said.
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:
"We rate CAESARS ENTERTAINMENT CORP (CZR) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself."