The dispute between CityCenter developers MGM Mirage and Dubai World could land the giant project on the Las Vegas Strip in bankruptcy court.

An insider at MGM Mirage on Thursday night confirmed that the CityCenter joint venture 
has hired the law firm Dewey & LeBoeuf, potentially for a bankruptcy filing if that 
becomes necessary.

The source, who is familiar with negotiations that took place Thursday on the future of 
CityCenter, stressed that MGM Mirage itself did not hire the bankruptcy counsel. While 
MGM Mirage may face difficulties in making payments on its massive debt load, the source 
pointed out that there are alternatives to bankruptcy.

One way for big companies to reduce debt is to engage in bond exchanges, which is what 
Harrah's Entertainment is doing and which may be an option for MGM Mirage. In the case 
of MGM Mirage, there's also the possibility of an equity infusion from majority 
shareholder Kirk Kerkorian or others. Such an equity infusion is how Sheldon Adelson 
bolstered the balance sheet of Las Vegas Sands Corp. last year.

If MGM Mirage and Dubai World fail to make a USD 220 million payment for CityCenter due 
Friday, the project could be sent into bankruptcy reorganization.

A bankruptcy filing could bring work on the USD 8.7 billion project to a halt, though it 
could later resume once financing is arranged during the bankruptcy process.

Dubai World sued MGM Mirage on Monday, claiming MGM Mirage breached terms of the joint 
venture agreement to develop the USD 8.7 billion project, forcing Dubai World to invest 
more than expected for CityCenter while MGM Mirage's financial future is in doubt.

Because of MGM Mirage's financial troubles "the current path of the project is simply 
unsustainable," Dubai World said. Dubai World also alleges that MGM Mirage mismanaged 
CityCenter, going over budget and requiring higher-than-anticipated contributions from 
Dubai World.

MGM Mirage called the suit "completely without merit.''

Also Thursday night, Deutsche Bank securities analyst Andrew Zarnett issued a report 
pointing out two likely affects to the Las Vegas economy if CityCenter is delayed by the 
financial issues. Locals casino operators would be hurt initially as thousands of 
construction workers would lose their jobs, or be temporarily furloughed; and the 
beginning of employment is delayed for thousands of CityCenter hotel and casino workers.

But established Las Vegas Strip casino operators such as Harrah's, Wynn Resorts and Las 
Vegas Sands stand to benefit by a delay in bringing the new CityCenter rooms online -- 
especially in light of the recession that has reduced visitation to Las Vegas and hurt 
all the gaming companies.

"Should CityCenter potentially get postponed due to the above events, we believe that 
existing Las Vegas operators as well as the overall Strip demand/supply dynamics may 
stand to benefit,'' he said in a note to investors. "However, this may negatively impact 
the Las Vegas locals market as CityCenter currently employs over 8,500 construction 
workers and is expected to employ approximately 12,000 workers to staff CityCenter.'' 

Source: LasVegasSun.com

MGM MIRAGE owns and operates 11 casino resorts located in Nevada, Mississippi 
and Michigan, and has investments in two other casino resorts in Nevada and New 
Jersey. The company is headquartered in Las Vegas, Nevada, and offers an 
unmatched collection of casino resorts with a limitless range of choices for 
guests. Guest satisfaction is paramount, and the company has approximately 
40,000 employees committed to that result. 

Its portfolio of brands include AAA Five Diamond award-winner Bellagio, MGM 
Grand Las Vegas — The City of Entertainment, The Mirage, Treasure Island (“TI”), 
New York - New York, Boardwalk Hotel and Casino and 50 percent of Monte Carlo, 
all located on the Las Vegas Strip; Whiskey Pete’s, Buffalo Bill’s, Primm Valley 
Resort and two championship golf courses at the California/Nevada state line; 
the exclusive Shadow Creek golf course in North Las Vegas; Beau Rivage on the 
Mississippi Gulf Coast; and MGM Grand Detroit Casino in Detroit, Michigan. 

The Company is a 50 percent owner of Borgata, a destination casino resort at 
Renaissance Pointe in Atlantic City, New Jersey. Internationally, MGM MIRAGE 
also owns a 25 percent interest in Triangle Casino, a local casino in Bristol, 
United Kingdom.

Publisher:
swiss-press.com

Branche:
Casinos
Casinos
Kontakt:
MGM Mirage / Casinos.ch

Link zum Firmen-Portrait von MGM Mirage