MGM Using Casinos As Collateral For Debt Management

MGM Mirage is one of the most recognizable names in the casino industry. It has casinos all across the world and is considered by many to be one of the strongest casino companies. If that is the case, the industry could be in a heap of trouble.

It has now been reported that MGM has offered up casinos that it owns as collateral to lenders. The company is trying to eliminate some of its debt, and that could mean not only using the casinos as collateral, but also selling some of their properties.

"Talks with our financial partners are ongoing," MGM told Bloomberg in an e-mail response to questions, "We're evaluating every possible option and, as we've said before, we will explore all serious and credible possibilities."

MGM Mirage is based out of Las Vegas and is controlled by Kirk Kerkorian. The company is the largest casino owner on the Las Vegas Strip, but that may change if they begin to sell off their properties.

The goal for MGM is simple, try to avoid bankruptcy. That is a fate that Trump Entertainment, a rival casino company, could not avoid earlier this year. Station Casinos is also on the verge of bankruptcy.

The casino industry in the US is at an all time low. It was once considered an industry that was immune to any recession, but that theory is being proven to be incorrect in the current economy. Casinos are struggling as badly as most businesses in the US.

March 16, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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