MGM moving towards Bankruptcy?
- Thread starter shadroch
- Start date
Looks like they've withdrawn the last of their available credit. Things certainly are not looking good for them. It will be interesting to see whether they decide to sell additional properties as they recently sold TI.
http://ww2.cfo.com/banking-capital-markets/2009/02/mgm-mirage-drains-its-credit-kitty/
http://ww2.cfo.com/banking-capital-markets/2009/02/mgm-mirage-drains-its-credit-kitty/
MGM announced today that it may seek bankruptcy protection. It is trying to sell 300 acres of undeveloped land in Vegas and two jets. MGM and its partner,Dubai Worlds, are an estimated 1.3 billion dollars short of the cash needed to finish City Center, and have a more than 5 billion dollar ballon payment due on its debt in 2010.
Here's a news story:
(Dead link: http://news.yahoo.com/s/ap/20090304/ap_on_bi_ge/mgm_mirage_finances_1)
My wife made an amusing Freudian slip when confronted with this news, mentioning Kevorkian instead of Kerkorian. Very apropos.
And, to callipygian, yes, it was a sad day when the shuttle down to Monte Carlo was shut down. That was a regular part of my scouting path in those days.
(Dead link: http://news.yahoo.com/s/ap/20090304/ap_on_bi_ge/mgm_mirage_finances_1)
My wife made an amusing Freudian slip when confronted with this news, mentioning Kevorkian instead of Kerkorian. Very apropos.
And, to callipygian, yes, it was a sad day when the shuttle down to Monte Carlo was shut down. That was a regular part of my scouting path in those days.
I'll keep an eye out for him with his thumb out!
By the way, here's a better article than the one I previously mentioned. This one from the LVRJ:
http://www.reviewjournal.com/business/mgm-mirage-talks-lenders
By the way, here's a better article than the one I previously mentioned. This one from the LVRJ:
http://www.reviewjournal.com/business/mgm-mirage-talks-lenders
Ken, we are living in unprecedented times now. There is an economic tsunami sweeping not only throughout the US but in every corner of the world.
Which casino or casino chain would be the first to fall is a matter of conjecture now. Which casino would be left standing or the last to fall is a matter of conjecture also.
Could all the casino chains be gone in the long run. I would say it is possible. What is your guess on this?
For those of you looking just at the US economy and thinking how long this recession would last I would say you are being short sighted. This is a world depression which may or may not rival the 1929 Great Depression.
Which casino or casino chain would be the first to fall is a matter of conjecture now. Which casino would be left standing or the last to fall is a matter of conjecture also.
Could all the casino chains be gone in the long run. I would say it is possible. What is your guess on this?
For those of you looking just at the US economy and thinking how long this recession would last I would say you are being short sighted. This is a world depression which may or may not rival the 1929 Great Depression.
I would say Las Vegas Sands and Station Casinos will probably be first that are in serious trouble...Harrah's and MGM both have an abundance of properties in Vegas so selling off 1 or 2 properties could give them some room to maneuver. MGM hurt themselves bad by pushing forward with the City Center project.
Boyd Gaming and Wynn seem to be in the best shape so far for the rest of year...
Boyd Gaming and Wynn seem to be in the best shape so far for the rest of year...
Well if the price is right...someone would step in and buy them...they definitely wont be getting the premium on a property or land that they use to tho.
Wynn I believe renegotiated most of there credit lines in the beginning of the downturn...and should beable to weather the storm a little better than most. Boyd did something similar by stopping construction on Echelon and freeing up space on there lines of credit...which allowed them to make a play for Station Casinos for $950 million.
IMHO the more diversified market wise a company is the better off they will make it thru...companies with a large portion of their business centered in Vegas with multiple casinos are going to have a tougher run.
Wynn I believe renegotiated most of there credit lines in the beginning of the downturn...and should beable to weather the storm a little better than most. Boyd did something similar by stopping construction on Echelon and freeing up space on there lines of credit...which allowed them to make a play for Station Casinos for $950 million.
IMHO the more diversified market wise a company is the better off they will make it thru...companies with a large portion of their business centered in Vegas with multiple casinos are going to have a tougher run.