Planet Hollywood Resort has had it's debt taken over by Harrah's Entertainment. In a move common with distressed industries, this signals that Harrah's Entertainment will eventually take over the management of the company. This type of transaction is similar to Carl Ichan acquiring a controlling interest in Tropicana Entertainment. In a period of lower revenue, dropping visitor numbers and rising debts, it is another signal of troubled times for the highly leveraged entertainment and gaming industry.

The idea of it all is quite simple. Harrah's is moving in on the global brand name Planet Hollywod during the entertainment company's most dire times. Debt defaults are looming for many distressed entertainment companies, and Planet Hollywood is one company that is receiving many letters from their lenders asking them to service their loans.

Harrah's itself has it's own debt problems, but is clearly looking forward to leaner times and is taking advantage of other company's debt problems in the mean time.

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