Caesars Entertainment Operating Company, the owner of the Caesars Palace Hotel and Casino in Las Vegas, will file for a voluntary Chapter 11 bankruptcy in mid-January, the New York Times reports.
"The highly efficient R.E.I.T. structure would enable [Caesars Entertainment Operating Company] to maximize its value and provide the most financial recovery to each of CEOC's creditor groups," Gary Loveman, chairman of the company, said in a statement.
"The formation of a publicly traded R.E.I.T. would also allow [Caesars Entertainment Operating Company] to significantly reduce its leverage by creating two better capitalized companies with vastly improved cash flow generation."
The new agreement is said to usher in a restructuring of billions of dollars of company debt that will secure debt reduction to about $8.6 million from its current $18.4 billion, the New York Times also reports.
The company also owns the Harrah's and Horseshoe casino brands.
The entertainment group is not the only company experiencing hardship with maintaining casino profits and staying in business.
The Taj Majal, owned by Trump Entertainment Resorts Inc., is set to close on Saturday. However, investor Carl Icahn has offered to keep the Atlantic City-based casino afloat.
Atlantic City and Las Vegas has experienced a decline in casino attendance and profits in recent years, which has been attributed to a worsening national economy.
Earlier this week, Caesars Entertainment missed a $225 million interest payment, signaling the company's economic woes.
