It looks like Harrah's Entertainment Inc., will acquire the Planet Hollywood Resort & Casino in Las Vegas through its subsidiary PHW Las Vegas LLC, specially set up for this venture. On Monday, the Nevada Gaming Control Board announced that the new company had filed the application for this purpose last week. Harrah's purchased a US $140 million piece of Planet Hollywood's US $870 million debt last September for an undisclosed amount from creditors in PH, as it had defaulted on its commercial mortgage around the same time.

From Las Vegas, a report has placed the Harrah’s company filing as notice of its intentions of acquisition because the debt papers purchased gives lenders the right to foreclose on the property, and could give Harrah’s, which controls six properties facing new MGM Mirage CityCenter development, enough influence over the other lenders to control the property.

Gary Loveman, Harrah's CEO said in an email to his employees last week that the company is working on a plan to own and manage the property: "This is an attractive proposition because of Planet Hollywood's proximity to our other resorts on the Strip, its high-quality product offering and its strong brand name."

Planet Hollywood spokeswoman Amy Sadowsky said that “the company is still in discussions with its lenders”. Restaurateur Robert Earl, who developed the movie-themed Planet Hollywood restaurant chain and investment manager Bay Harbour Management acquired the Las Vegas property in 2007. Starwood Hotels & Resorts Worldwide Inc. currently manages the project's hotel and also has a minority stake in Planet Hollywood. (E-12.03.09)

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