By ARNOLD M. KNIGHTLY, LAS VEGAS REVIEW-JOURNAL
Harrahâ€™s Entertainment is buying up the Planet Hollywood Resortâ€™s debt in what an analyst said could be a bid to take over the financially troubled Strip resort.
Sources confirmed this weekend that Harrahâ€™s has purchased a portion of the resortâ€™s $860 million debt that is leveraged against the property.
Officials from Harrahâ€™s and Planet Hollywood Resort declined to comment (Sept. 14).
The Planet Hollywood restaurant at what was Caesars Tahoe , and is now MontBleu, closed years ago.
Brian Gordon, a principal at Applied Analysis, said Harrahâ€™s could be following the recent trend of acquiring casino properties through debt instead of a buyout.
â€œWith covenant and debt defaults looming around for some of these properties, itâ€™s a potential way to gain eventual ownership of a property,â€ Gordon said.