MGM Mirage faces bankruptcy

With the economic situation still worsening around the world, one of the largest corporations involved in the Las Vegas economy is facing potential bankruptcy with its current loan balances.

MGM Mirage Inc., which has not filed an earnings statement since last September, said on Tuesday that it is in the position of possibly defaulting on loans that were made for its latest project, the $8.6 billion CityCenter in Las Vegas. The company, owned by 91-year-old billionaire investor Kirk Kerkorian, stated in an unscheduled filing with the Securities and Exchange Commission (SEC) that, unless the economic situation turned around quickly and traffic returns to its casinos, MGM Mirage would break many of its loan agreements this year.

In another attempt to raise funds, MGM Mirage sold its Treasure Island property to businessman Phil Ruffin and is also looking at selling nearly 300 acres of land in Nevada and Atlantic City. Even with these property sales and revenue streams, MGM Mirage still is looking at raising another $1.2 billion to finish CityCenter on the Las Vegas Strip. The project is a joint venture of MGM Mirage and Dubai World subsidiary Infinity World Development Corporation. The property, which would house hotels, a casino, condos, and retail space, has been called the largest privately financed project in American history.

(Poker News Daily)