The casino operator rose the most in five months after increasing its offer to junior creditors in the bankruptcy of its largest unit.
US.- Caesars Entertainment Corp. rose the most in five months after it increased its offer to junior creditors in the bankruptcy of its largest unit.
Caesars proposed to pay as much as 55 cents on the dollar in a combination of notes and stock as long as two thirds of the junior creditors agree. According to a company’s statement, as of late Monday, 37 percent of junior bondholders had signed on to the new terms.
After the news, the shares surged as much 14 percent to US$8.37, which is the biggest intraday gain since February. Shares were trading at US$8.11 at 12:23 p.m. in New York. As per Trace’s reports, the bond-price reporting system of the Financial Industry Regulatory Authority, the company’s US$3.6 billion of 10 percent second-lien notes surged 8.5 cents to 51.5 cents on the dollar on Monday.
Caesars put its Caesars Entertainment Operating Co. into bankruptcy last year and since then, 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 US$4.4 billion to Chinese investors led by Shanghai Giant Network Technology Co.