Planet Hollywood's debt purchased by Harrah's
Planet Hollywood has had some negative press lately, what with poker employees arrested for stealing money and nightclubs closed for illegal activities.
Now extreme debt has forced the hotel-casino to accept a loan to stave off bankruptcy.
And who stepped up to pay part of PH's $860 million loan?
Their next-door competitor Harrah's.
Harrah's owns most of the casinos on the east side of the Las Vegas Strip, including Paris Las Vegas which is on the north side of Planet Hollywood.
Back when they were public, rumors swirled that Harrah's was planning to connect their properties into a sprawling mega casino mall. Their last purchase was Barbary Coast, renamed to Bill's Gamblin' Hall & Saloon. Barbary Coast interrupted Harrah's flow between Flamingo and Bally's; with its purchase, they didn't have to build a bridge to hop over Barbary.
But then they went private, the economy tanked, and plans were squashed (though a recent news item has Harrah's interested in extending their Carnival Court around the Flamingo/Bill's area).
Absorbing Planet Hollywood's debt puts Harrah's in the position to snap up the former Aladdin casino, extending Harrah's reach by another building.
