Vegas Tripping made this post earlier today and it got me thinking….
There are a lot of signs pointing to the possibility of Harrah’ Entertainment filing for bankruptcy reorganization in the very near future.
Not but a week ago, Harrah’s applied to draw down the final $740M from their revolving credit line, which many say is a last minute ‘use it or lose it’ hoarding/harvesting of available cash before the bankruptcy filing begins.
So lets assume Harrah’s goes bankrupt. What then?
Can a company of the size of Harrah’s function in this economic atmosphere? How long will bankruptcy proceedings ham string the company? Will they be required to divest themselves of assets as part of a bondholder agreement? Will this affect the guest experience via operational cut backs or ratcheting up the hold on the casino floor? Will Harrah’s become the new Trump – riding the decade long debt load merry-go-round till it slowly grinds to a halt?
Perhaps, most importantly… will our Total Rewards points be considered “debt” and vanish in the agreement?
I’ve been focusing all of my Atlantic City play to Harrah’s properties because of their many locations. At this point I can get rooms anywhere and anytime. This may change things on my next trip to Las Vegas. It may change where I play big.
Video Poker at Harrah’s properties in Vegas have shit pay outs, so I may keep my Caesars Palace video poker gambling very low and save money for a 9/6 JOB casino. I’ll have to keep this in mind for my upcoming research. For now, I’ll have to consider the possibilities.
Thanks, again, to Vegas Tripping for the thought provoking article.
