MGM Mirage Makes $70 Million Payment, Still No Money From Dubai

MGM Mirage is struggling financially and they are not receiving much help from their supposed partner, Dubai World. MGM made another payment that was due on Friday, this time of $70 million, but none of that came from Dubai World.

The two partnered on the City Center project in Las Vegas. It is a mega-gaming and entertainment complex that could change the face of casino gambling in Las Vegas. The partners, however, have been at odds over the cost of the project.

Dubai World has accused MGM of creating the cost overruns on the project and has refused to put any more money into the CityCenter deal until a new settlement is reached with MGM. Dubai World is looking for a bigger stake in MGM before they move forward with the project.

In the meantime, MGM has had to make a $200 million loan interest payment two weeks ago, and then another $70 million payment today. In two more weeks, another $200 million is due and there is no indication that Dubai World will come up with their half at that time.

On Monday, MGM received good news from lenders when they amended their senior credit facility which allowed for the company to continue paying construction costs and keep the project moving. MGM has been persistent with the thought that they want to finish the project.

Bankruptcy is always a possibility when the stakes are this high, but MGM has so far rejected that option. They may be forced by bondholders to pursue that option in the future to re-structure their debt.

April 17, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
Submit News!