Caesar's Entertainment to buy Caesar's Acquisition, clearing unit for bankruptcy filing

IndustriesAssociated Press

Caesar's Entertainment will buy an affiliate in a bid to smooth the reorganization of another struggling division and balance its debt load.

The Las Vegas company will take Caesar's Acquisition in an all-stock deal, giving its shareholders an approximately 62 percent in the combined company.

Continue Reading Below

The maneuver will help Caesars Entertainment Operating Co. handle its debt load. The company received a default notice earlier this month, although it disagreed that a default had occurred. Last month, Caesars said it was in discussions with its creditors to lower its $24.2 billion in debt.

Caesar's Entertainment Operating Co. will file for bankruptcy as part of the deal announced Monday.

The new company will have $1.7 billion in cash and operate its casinos in addition properties like Planet Hollywood and online gambling.