MGM Mirage's Kerkorian May Offer Up Casinos To Avoid Default

Bloomberg:

March 16 (Bloomberg) -- MGM Mirage, seeking to modify lending terms on its unsecured debt and avoid default as gambling activity withers, is in talks with banks to pledge casinos as loan collateral, a person with knowledge of the discussions said.

The Las Vegas-based casino company, controlled by 91-year- old investor Kirk Kerkorian, said it is also open to selling more assets. Analysts have suggested other options, including handing over a property directly to bondholders to eliminate some debt.

Read the whole story: Bloomberg

Comments

[1vegasjack]

the c.e.o. & his group of pres. & vice pres. robbed the joint with bonus money. while the workers got 1.8 % raises. and doubled there work. I retired 1 yr ago the best day of my life

[KCFreedom]

Isn't that what all corporations do anymore?

I'm sorry for the workers, as usual.

[thinbluetorpedo]

Ten percent off of the peak year of 2005. Trust me, the casinos are full. That picture above would have been taken at 4 AM in the morning and was likely hard to find an area that quiet.

All the large casino operators like MGM are struggling for two reasons. Poorly managed and and excessively lavish building practices leading to unreal debt. Any business that tanks this bad on a 10 percent decline has to question their business model. They should be rolling in cash.

[Eyeswideopen1]

A town as pretentions as Vegas will get what it deserves.