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.
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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.