MGM Mirage is rolling the dice

Posted Mar 5th 2009 2:30PM by Connie Madon
Filed under: Management, Recession

Will some lights go out in Vegas? Donald Trump rolled the dice and lost. His Trump Entertainment Resorts has filed for Chapter 11 bankruptcy. Not to be outdone MGM Miraage (NYSE: MGM) now has the dice and must make its points to stay in the game.

MGM Mirage owns the Belagio, MGM Grand and Mirage casinos plus other properties.in Las Vegas. Now in the midst of building a City Center costing $9 billion dollars, MGM needs money really badly. It has $1.2 billion dollars of bonds falling due this year, another $1.2 billion in 2010 and needs an additional $1.2 billion to compete City Center.

The picture is bleak to say the least. MGM"s independent accounting firm's report will contain a statement concerning the likelihood that MGM may default on its bond obligations.

MGM has the dice and they absolutely must make their point. Time is running out. They must raise capital before their liquidity runs out.

So if you are good at blackjack or craps, why not go to Vegas and help them out by giving them your winnings. It might not be such a worthy cause, but it would keep the lights on.

Tags: Las Vegas, LasVegas, MGM Mirage, MgmMirage

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Reader Comments (Page 1 of 1)

3-05-2009 @ 3:38PM

Brian said...

The writer of this story missed a big fact right off the top: Donald Trump does not own any casinos in Las Vegas. His hotel here is NOT a casino, and in fact is a wholly separate business from his Entertainment arm (I believe it's Trump International). It really brings into question just how much else in this story is wrong.