Caesars Entertainment has offered $4 billion to creditors of its operating unit in a revised bankruptcy plan that it hopes can end the court fights, in line with a report from Reuters.

Earlier this week, The Wall Street Journal reported that Caesars is entertaining the speculation of promoting its online gambling division, Caesars Interactive Entertainment, for approximately $4 billion. CIE also controls the arena Series of Poker.

A lawyer for the Caesars’ bankrupt operating unit told a U.S. Bankruptcy judge on Wednesday that the corporate would put $4 billion toward its restructuring agreement, up from the $1.5 billion originally proposed.

Caesars Entertainment Operating Co. has greater than $18 billion in debt.

Bloomberg reported that Caesars would give creditors as much as 47.5 percent of stock in its reorganized company, in addition to $406 million in cash, $1 billion in convertible notes and a reduction on rights to shop for $500 million worth of stock.

The Chapter 11 bankruptcy was complicated by creditors alleging that Caesars the parent company stripped away a lot of its best casinos from the operating unit to shield them from creditors. Caesars has denied those allegations.

According to the Reuters report, some creditors likely won’t be satisfied with the $4 billion, which might come from Caesars merging with another one in all its affiliates, Caesars Acquisition Co. The creditors believe they are able to get $5.1 billion through lawsuits.

Caesars the parent company could potentially file for bankruptcy as well, dependent on what happens with the creditor litigation.

Mitch Garber, CEO of CIE, said that there no guarantee a deal will happen for CIE. The WSJ reported that any potential deal may not include the WSOP, but instead involve CIE’s mobile-games business. Nearly all of CIE’s revenue comes from social casino games, as opposed to real-money online gambling.

Read More... [Source: CardPlayer Poker News]