The first time I ever heard of City Center I thought: "These people are out of their freakin' minds! It's the size of a small city!" I'm that close from being proven right!:
MGM Mirage (MGM) made a $200 million payment due Friday to its City Center project, including the $100 million owed by its now-disgruntled partner, to keep the massive resort and casino project from halting construction and potentially falling into bankruptcy.
There had been speculation that City Center, the $8.6 billion Las Vegas development owned by MGM, would miss the payment and file for bankruptcy protection, putting the completion of the massive project in doubt.
...MGM said Friday it would work with Dubai World, its investment partner in the project, and its lenders to find "a long-term solution for the financing of City Center's completion."
Chairman and Chief Executive Jim Murren added, "We are doing our utmost to see that this project continues, keeping thousands of Nevadans employed. We will continue to make every effort to see that City Center is completed."
MGM was sued earlier this week by Dubai World, which alleged the troubled casino operator breached the terms of their venture. MGM has said the suit is "completely without merit." Dubai World has blamed MGM for massive cost overruns on City Center.
The City Center project is a stark example of how excesses spawned during a lengthy gambling boom are coming back to haunt the casino industry. The project is so large that thousands of workers depend on it for jobs. Las Vegas has been reeling from a slump in tourism revenue, as hotel-room occupancy rates have dropped, pushing up unemployment in the region above the national average.
...MGM Mirage, which has a big presence on the Las Vegas Strip, may sell more assets as it races to negotiate new terms with lenders to avoid defaulting its debts. The company already won a waiver from lenders of covenants on its senior credit facility through May 15.
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