$8 billion Las Vegas project reportedly considers bankruptcy

[marmar]

Reuters via Yahoo!:



Las Vegas project considers bankruptcy: report
Thu Mar 26, 11:58 pm ET


NEW YORK (Reuters) – City Center, an $8 billion Las Vegas project owned by MGM Mirage (MGM.N) and Dubai World, has hired counsel to advise on a possible bankruptcy filing, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The casino operator, controlled by billionaire Kirk Kerkorian, and its joint venture partner Dubai World are likely to struggle to pay $220 million due Friday on CityCenter, the newspaper said.

When contacted by Reuters, a spokeswoman for MGM Mirage declined comment.

CityCenter has hired Dewey & LeBoeuf to prepare for a possible Chapter 11 filing as soon as this weekend, depending on the outcome of talks between MGM Mirage, the lenders and Dubai World, the people told the WSJ.

Dubai World said on Monday it sued MGM over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM filing constitute events of default under the joint venture.

CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip and it is slated to open late this year. MGM and Dubai World have $500 million to fund before a $1.8 billion bank facility becomes available in May.


http://news.yahoo.com/s/nm/20090327/bs_nm/us_mgm_citycenter

[ixion]

1. see how easy it is to walk away from debt if you're a corporation?

I mean, 220 mil? Kerkorian is a billionaire. He could write a check.

Congress passes the so-called Consumer Protection Act (:puke:) which makes it next to impossible for an individual to get a fresh start, but corporations, well, all they have to do is retain an attorney and all will be okay. :eyes:

[Fumesucker]

2. The whole purpose of a corporation is to limit liability..

That is the main reason people set up corporations, to limit their personal liability in case something goes amiss.

Corporate personhood is a crock and should be abolished.

[Lone_Star_Dem]

5. That's exactly right

The problem lies in giving an entity which is supposed to limit a natural person's liability, the rights of a natural person.

Corporate personhood was the most insane thing I've ever seen established in my lifetime.

[TexasObserver]

3. They're buying time and looking for a new financing package.

We will see a lot of projects jump into bankruptcy and try to stay viable. Once in bankruptcy, they can often get loans they could not get before going into bankruptcy.

[MineralMan]

4. I was in Vegas in January, at New York New York,

and saw City Center from my hotel window. I read up on it while I was there and remember commenting to my wife that the place would be bankrupt within the year.

[blue_onyx]

6. This is probably why MGM Mirage is trying to sell MGM Detroit

I was in Vegas about the 2 years ago and the construction crew for City Center knocked out the power for the Monte Carlo. Luckily we scheduled a wake up call because we were leaving that morning. It's not surprising that this project may go bankrupt. People just aren't traveling and I wouldn't be surprised to see other construction projects meet a similar fate.

[Eugene]

7. Reuters: MGM makes payment for Vegas CityCenter project

Source: Reuters

MGM makes payment for Vegas CityCenter project
Fri Mar 27, 2009 6:09pm EDT

By Jui Chakravorty Das and Paritosh Bansal

NEW YORK (Reuters) - CityCenter, an $8 billion Las
Vegas project owned by MGM Mirage and Dubai World,
won a reprieve on Friday when MGM committed $200
million to allow construction to continue while project
leaders seek additional funding.

"MGM Mirage intends to work with Dubai World, its
lenders and others to find a long-term solution for the
financing of CityCenter's completion," MGM said in a
statement.

News of the funding came after sources had feared that
the Las Vegas project could file for bankruptcy as early
as Friday.

-snip-

Read more: http://www.reuters.com/article/newsOne/idUSTRE52Q6DP20090327