[momofvegasgirls]

Can someone please explain this move, in plain English? Seems like their jewels and money makers are in one corner and the the ones with fluctuating identities are in another....

MGM Resorts announces restructuring plan involving 10 properties - VEGAS INC

[BBMW]

It could be a couple of different things. On the surface, they're appear to be trying to separate the value of the real estate their properties are sitting on, by packaging that separately as a REIT, from the value of the operating business. Sometimes the valuation of the separate pieces in more than the valuation of the entire package. REITs also get some advantageous tax benefits that could add to the valuation.

It would also come in handy if they want to do some sort of prepackaged bankruptcy (as Caesars is trying to do.) Put the junk in on company and BK that, while shielding the worthwhile assets from the creditors in another company. It will be interesting to see if Caesars can actually pull this off.

[gaash2]

Originally Posted by BBMW

It could be a couple of different things. On the surface, they're appear to be trying to separate the value of the real estate their properties are sitting on, by packaging that separately as a REIT, from the value of the operating business. Sometimes the valuation of the separate pieces in more than the valuation of the entire package. REITs also get some advantageous tax benefits that could add to the valuation.

It would also come in handy if they want to do some sort of prepackaged bankruptcy (as Caesars is trying to do.) Put the junk in on company and BK that, while shielding the worthwhile assets from the creditors in another company. It will be interesting to see if Caesars can actually pull this off.

Basically this. They are restructuring what they can into a REIT so the stock can trade higher due to the tax benefits of being organized as a REIT. The latter part about a prepack BK is definitely not in their plans for anytime soon, nor is the market suggesting much chance they go bankrupt anytime soon.