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What happened 

Shares of Caesars Entertainment Corp (CZR) jumped 13.3% in December, according to data provided by S&P Global Market Intelligence, after the company agreed to a reorganization plan that may finally lead to its biggest subsidiary emerging from bankruptcy. 

So what 

The back and forth over Caesars Entertainment Operating Company's bankruptcy has moved one step closer to resolution after senior creditors dropped their concerns about a reorganization plan. 90% of lenders now approve of the company's reorganization, with the last holdout being the U.S. Trustee, a watchdog who opposes protections given to Apollo Global Management and TPG Capital Management. The firms and its leaders could have faced legal charges from when they split Caesars Entertainment into multiple subsidiaries in an effort to shield the company's best assets from bankruptcy.

On January 17 the bankruptcy judge has to review and approve the plan, but it appears that most of the holdouts are now gone. What's left to wonder is what's left for shareholders, who will own a fraction of the restructured company. 

Now what 

Current shareholders will own just 6% of the newly restructured company, and with a current market cap of $1.2 billion the company would be worth around $20 billion at today's stock price. That's a hefty price for a combined company with $1.33 billion in EBITDA over the past year.

Shares seem to be moving based on news of restructuring, but with little regard to the value shareholders will be holding long-term. Until the restructuring is complete and we get a few quarters of results, this is a stock I simply wouldn't gamble on.