- Caesars put its largest unit into bankruptcy last year
- Casino operator has been battling creditors in multiple courts
Caesars Entertainment Corp. rose the most in five months after the casino operator increased its offer to junior creditors in the bankruptcy of its largest unit.
Caesars agreed to pay as much as 55 cents on the dollar in a combination of notes and stock if two thirds of the junior creditors agree. As of late Monday, 37 percent of junior bondholders had signed on to the new terms, according to a statement.
The shares surged as much 14 percent to $8.37, the biggest intraday gain since February, and were trading at $8.11 at 12:23 p.m. in New York.
Caesars, the largest owner of casinos in the U.S., put its Caesars Entertainment Operating Co. into bankruptcy last year. Creditors and the company have been battling it out in multiple courts. Over the weekend, Caesars announced plans to sell casino-style online games unit Playtika Ltd. for $4.4 billion to Chinese investors led by Shanghai Giant Network Technology Co.
The company’s $3.6 billion of 10 percent second-lien notes surged 8.5 cents to 51.5 cents on the dollar on Monday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.