Shares of Caesars fall sharply as debt talks fail

Shares of Caesars Entertainment fell $2.05, or 17 percent on Monday to close at $10.

The casino operator said the company’s bankrupt operating division, Caesars Entertainment Operating Co., has been unable to reach a deal regarding the restructuring plan to cut “some” debt, Reuters reported.

The company said it halted talks with the Ad Hoc Committee Bank Lenders. Caesars has until May 15 to file a plan for reorganizing Caesars Entertainment Operating Co.

On Monday the company asked a judge to grant a six-month extension, The Motley Fool reported on its website. The company’s rationale was the complexity of the transaction as well as legal challenges that could unravel spinoffs that created the now-bankrupt Caesars Entertainment Operating Co., the story said.

The Wall Street Journal also reported that CEOC wants until Nov. 15 to file its own reorganization proposal without the threat of rival plans.

Such a request is common in bankruptcy cases, the Journal reported.

Companies have a 120-day exclusive period to start their case, but can request extensions. Judges typically approve them, the Journal noted.

Judge A. Benjamin Goldgar with the U.S. Bankruptcy Court in Chicago is overseeing the case.

Caesars Entertainment Operating Co. unveiled a plan to trim $10 billion of $18 billion in debt and exit Chapter 11 in a March filing with U.S. Bankruptcy Court.