In a statement released Friday by Caesars Entertainment Group, an agreement for restructuring a major operating division within the company that filed bankruptcy six month ago, Caesars Entertainment Operating Co Inc., (CEOC), has been reached with its largest lender group.

The agreement will allow the company to focus on their last major debt holder group and gain their support for the restructuring plan for the bankrupt division, according to Caesars. The restructuring support gained from first lien bondholders and first lien bank lenders represents $12 billion of CEOC’s debt, Caesars said.

CEOC was placed in Chapter 11 by Caesars in January in order to convert it into a real estate investment trust. Of the company’s $22.8 billion debt, a gaming industry high, $18.4 billion is covered by casinos operated by CEOC. The restructuring would create two companies, one operating company leasing back to the casinos and a real estate investment trust that would own the real estate and buildings. It is estimated that the restructuring will cut almost $10 billion in debt from CEOC which operates twelve regional casinos along with Caesars Atlantic City, Harrah’s Reno and Caesars Palace.

Creditor support for the restructuring of CEOC was solicited by Caesars in order to precede an investigation into the bankrupt operating unit that was authorized by the court. It was reported in a securities filing by Caesars earlier this week that discussions with several large banks had ceased, but by Friday that had changed.

The company is still trying to build support with junior creditors for the second lien restructuring agreement which was announced previously. The company would like to completion of the restructuring to be consensual, according to Caesars.

Apollo Global Management and TPG Capital, both private equity firms who own the majority of Caesars, privatized the company in a $31 billion leveraged buyout in 2008.

News of the on again restructuring talks drove Caesars stock up 16.74 percent on Friday, making it the best market day in a month for the company.

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