Caesars Entertainment Corp CZR proposed turning its operating unit into a real estate investment trust in a move to restructure its debt, according to Bloomberg.
In the extended session recently Caesars changed hands up 16 percent at $16.70.
Caesars proposed the REIT structure to its lenders and said it had no assurance the plan would be accepted.
The company last month opened formal discussions with its bank lenders after they said it had defaulted.
Under the REIT proposal, holders of about $5.36 billion of loans would be fully repaid in a combination of cash and debt; first-lien bondholders who own $6.35 billion of securities would get 93.8 cents on the dollar in cash, debt and equity.
The company said in August it would seek a restructuring of its debt in the long term because of insufficient cash flow.
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