City Center Casino Project Update: MGM Mirage Makes Loan Payment

As previously reported here at CGW, MGM Mirage and Dubai World had been in danger of heading towards bankruptcy with their new City Center project in Las Vegas. MGM ensured that would not happen today when they made a $200 million loan payment.

"We are doing our utmost to see that this project continues, keeping thousands of Nevadians employed," said MGM Mirage Chairman and Chief Executive Jim Murren, "We will continue to make every effort to see that City Center is completed."

The project is one that could change the landscape of Las Vegas. Owners of other casino resorts in the city are concerned that the high end hotel rooms that will be offered at City Center could severely damage business at their casinos.

We reported earlier that 8,500 construction jobs were at stake with MGM and Dubai World's decision on the project. Now that MGM has made the payment, those construction jobs appear safe for now.

What still has not been determined is how MGM and Dubai World will continue to do business together. Dubai has blamed MGM for cost overruns, and has threatened to pull out of the project.

Still MGM is committed to moving forward and seems content with doing so as Dubai's partner, saying that the companies would work towards finding "a long term solution for the financing of City Center's completion."

March 27, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
Submit News!