NEW YORK (TheStreet) -- Shares of Caesars Entertainment Corp. (CZR) are surging, up 15.10% to $16.54 in pre-market trade, after it was reported that the highly indebted gaming company presented a plan to creditors that would restructure the obligations of its biggest unit by turning it into a real estate investment trust, according to Bloomberg.
The proposal would convert Caesars Entertainment Operating Co. into a property company that owns its casinos and a unit that would manage them, according to a regulatory filing today. Caesars said it remains in talks with creditors and that the blueprint is "outdated," Bloomberg reports.
Caesars is trying to wrangle the support of dozens of creditors holding $18.4 billion of debt to try to push through a pre-arranged bankruptcy plan. The casino operator, taken private for $30.7 billion by Apollo Global Management LLC and TPG Capital in 2008, has lost money every year since 2009 and struggled to meet its debt payments, Bloomberg noted.
The Las Vegas-based company was forced to reveal its proposal after lender Silver Point Capital LP exited restructuring talks, becoming at least the second to do so in the last month, sources told Bloomberg.
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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: