Caesars Entertainment Moves Seen As Chapter 11 Prelude

The financially troubled Caesars Entertainment Corp CZR took steps to start talks with lenders last week in what some see as a prelude to a bankruptcy filing.

Chief Executive Gary W. Lowman said the moves "create a path toward a sustainable capital structure."

As of June 30, Caesars' assets were $27.07 billion and its liabilities were $30.13 billion. Many observers believe a bankruptcy filing is inevitable.

In addition to signing non-disclosure agreements with major creditors last week to enable bank talks to begin, Caeasars granted senior bondholders a lien on its cash.

The move must precede a bankruptcy filing by at least 90 days or else won't be valid in Chapter 11 proceedings, according to Bloomberg news service, which said may seek a Chapter 11 filing by January 15.

Caesars has been struggling financially since at least 2009, and this year sold or shuttered four major properties in Atlantic city and Mississippi.

Yet, a newspaper in the Philipines said Caesars is set for a major expansion there. Citing unnamed sources, the Makati City-based Daily Inquirer said Caesar will hire 20,000 workers for the expansion. If so, that would boost Caesar's total worker headcount by more than a third.

Caesars traded Monday at $11.59, down 1 percent.