[dude66]

MGM’s Contingency Move Signals Standstill

3 Apr, 2009 / GamblingCompliance Ltd. / Scott Longley

Las Vegas-based MGM Mirage could be smoothing the way for a possible mothballing of its enormous CityCenter joint venture after a regulatory filing made mention of an extra $20m in contingency funding it could access from its lenders to make the site safe should the project be shut down.

The filing with the Securities and Exchange Commission (SEC) said that MGM could access this extra cash – over and above the $200m it unilaterally pumped into the project last week – “to ensure public health, safety and welfare or regulatory compliance in connection with CityCenter Holdings”.

continues:
MGM’s Contingency Move Signals Standstill | Gambling Compliance

[spike42]

There's this news today:

Crown Ltd. of Australia and Colony Capital are both allegedly trying to buy into CityCenter.
Australian businessman weighing CityCenter investment - Las Vegas Sun

And in today's Wall St. Journal:

MGM Mirage has hired Morgan Stanley to handle the potential sales of two of its steadiest cash cows — MGM Grand Detroit and Biloxi's Beau Rivage casino — according to people with knowledge of the matter.
MGM Explores Casino Sales - WSJ.com


Here's hoping one or more of these deals come through.

[sheriff]

MGM has publicly stated they want only to keep the Grand, Bellagio, and City Center. Their concern is to keep Dubai from becoming majority owner of City Center and MGM. Whether or not, they accept cash infusions from other parties remains to be seen. I doubt this will happen, but rather they will try to sell off other properties, as they did with Treasure Island. Kerkorian still has a lot of cash, if need be.

[ClarkGrisowld]

Yeah, they have WAYYY too much money already sunk into CityCenter and too close to completion not to finish it. It needs like $1B more, having already spent $8B or something like that.

The condos and some of the retail can wait because there are no buyers now. They'll finish the casinos without question.

[jfkIII]

☆ boon·dog·gle
noun
a trifling or pointless project, expenditure, etc.

[jfkIII]

Hooters are, er, I mean is, drooping? And they are such a low budget casino/hotel operation.

[ClarkGrisowld]

Originally Posted by jfkIII

☆ boon·dog·gle
noun
a trifling or pointless project, expenditure, etc.

I wouldn't call it a boondoggle. On what were obviously ovelry optimistic expectations, it made sense given the trends in gaming and real estate. Clearly they failed to consider a downturn, which makes it a bad business decision but hardly one confined to this industry.

Should they ultimately file bankruptcy, CityCenter would be a fantastic buy at 60 cents on the dollar.

And I think that will make it difficult for MGM to find partners. Why pony up now when you can wait a few months to buy-in cheaper? That probably means the current creditors and debtholders are going to have to deal.

[Peggy Anne]

Horrendous monstrosity. What were they thinking, or smoking ?

[olecapt]

Originally Posted by Peggy Anne

Horrendous monstrosity. What were they thinking, or smoking ?

Actually it will be a huge success...even if MGM loses their shirt.

And I, for one, think it an interesting architectural achievement.

[bradly]

Originally Posted by jfkIII

☆ boon·dog·gle
noun
a trifling or pointless project, expenditure, etc.

Its not pointless at all, Its the strip what do you expect. You can't just let a project like that fail.