Harrah's Development Plans In Question

Harrah's development plans for Las Vegas and Atlantic City have been called into question after the company has announced plans to go private. The question is how the additional debt will affect the operations of the company.

usquehanna Financial Group analyst Robert Lafleur said plans might be shrunk or slowed because of the squeeze that debt payments put on cash flow. "There's just less capital available to them," he said. "The plans may be on track, but then again we never really knew what the plans were. We never knew whether that involved knocking everything down and starting from scratch or putting a new coat of paint on the place."

Harrah's has a great number of projects going on around the world, and has a number more in the announcement stages. One thing most people aren't questioning, however, is the price per share the company received in the privatization.