NEW YORK (TheStreet) -- Caesars Entertainment (CZR) shares closed trading up 2.9% to $15.62 on Tuesday after analysts at JP Morgan said that the company will likely skip a $224 million interest payment owed to junior bondholders ahead of the it's expected bankruptcy filing in early 2015, according to Bloomberg.
Caesars has been in negotiations with creditors to reorganize its debt as the company has reported net losses in each of the past five years. Those losses led the company to agree on an outline of a path to bankruptcy last month.
The company will have a grace period of 30 days to make the interest payments which are due December 15.
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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:
"We rate CAESARS ENTERTAINMENT CORP (CZR) a SELL. This is driven by a number of negative factors, 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, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."