1281657--3/31/2009--BH_RE_LLC

related topics
{debt, indebtedness, cash}
{condition, economic, financial}
{capital, credit, financial}
{personnel, key, retain}
{cost, contract, operation}
{cost, operation, labor}
{competitive, industry, competition}
{regulation, government, change}
{control, financial, internal}
{operation, international, foreign}
{cost, regulation, environmental}
{loan, real, estate}
Risks Related to Our Substantial Indebtedness Our substantial indebtedness could adversely affect our financial results. Our future cash flows may not be sufficient to meet our debt obligations. The Loan Agreement imposes restrictions on our operations. Risks Related to Our Business We have a limited operating history. The Planet Hollywood brand has not historically been associated with hotels or casinos. We are dependent upon Planet Hollywood's entertainment industry relationships and the efforts and skills of the senior management of OpBiz. We may not be able to retain qualified senior management. Our managers, officers and key employees may not obtain applicable gaming licenses. We will face intense competition from other hotel casino resorts in Las Vegas. We face competition from gaming operations outside Las Vegas. Continued weakness and further weakening in global economic conditions may adversely affect consumer and corporate spending and tourism trends, resulting in additional deterioration in our business. The current conditions in the world's financial and credit markets may adversely affect our profitability. We extend credit to our customers and we may not be able to collect gaming receivables from our credit players. We are entirely dependent upon OpBiz for all of our cash flow. The gaming industry is highly regulated and we are required to adhere to various regulations and maintain our licenses to continue operations. Our employees have joined unions. Because we own real property, we are subject to environmental regulation. Energy price increases could adversely affect our costs of operations and our revenues. Acts of terrorism, as well as other factors affecting discretionary consumer spending, have impacted our industry and may harm our operating results and our ability to insure against certain risks.

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