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Wednesday, January 14, 2015

Markets split on endgame for Caesars' looming bankruptcy, (NASDAQ: CZR)

On the eve of Caesars Entertainment Corp's $10 billion debt-cutting bankruptcy, markets are reflecting two competing views of how the casino company's high-stakes plan will play out. One view is reflected in the parent company's stock price, which is up nearly 50 percent since the October lows. Shareholders seem optimistic about Caesars' proposed restructuring plan, which cuts the amount owed to junior noteholders by more than 90 percent.But credit analysts note that debt market prices suggest the parent company and its affiliates that are not filing for bankruptcy may have to share some pain to satisfy junior noteholders."The fact there is equity value in Caesars, that equity value describes a really optimistic view of how this will play out," said Chris Snow, an analyst with CreditSights.Caesars' operating unit is expected to file for bankruptcy on Thursday in Chicago.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR traded higher by 0.63% or $0.08/share to $12.71. In the past year, the shares have traded as low as $8.51 and as high as $26.74. On average, 1578020 shares of CZR exchange hands on a given day and today's volume is recorded at 1618416.