Caesars Entertainment on Wednesday proposed a restructuring plan that would turn the debt of its largest unit—Caesars Entertainment Operating Co—into a real estate investment trust, according to a U.S. filing. The proposal is one of several proposals that are being considered.
According to the filing, one of the casino's operators key creditors dropped out of the deal.
Shares rose as much 18 percent in after-hours trading and was last up about 16 percent. The stock has fallen some 20 percent over the the last year.
Caesars shuttered its Showboat casino in Atlantic City, N.J., earlier this year, citing declining sales and high property tax.
The company had more than $24 billion in long-term debt as of June 30, according to Thomson Reuters data.