CityCenter unaffected by Dubai World's request

01-01-2010

MGM Mirage, engaged in the development, ownership and operation of hotels and casinos worldwide, declared last Friday that its joint venture with Dubai World, which is seeking to delay debt payments, isn’t in danger.

Dubai World

Last Wednesday, Dubai World, with $59 billion of liabilities, surprised with a request for a freeze on debt payments until at least May. This announcement boosted worries about ripples of panic spreading around the globe from Dubai and resurrected concerns regarding the reschedule of Dubai World’s debt payments. Last Thursday, global markets fell, while Wall Street wasn’t opened due to the harvest festival (Thanksgiving).

CityCenter

The joint venture is not threatened by a debt default request by Dubai World, according to MGM Mirage’s spokesperson. “The finance of the CityCenter project has been completed, everything is on schedule and prepared to welcome the first guests next week.”

MGM Mirage

MGM’s CityCenter is a Las Vegas-based casino complex that represents a value of $8.5 billion and is owned for 50% by Dubai World. CityCenter has a 67-acre surface that includes luxurious resorts, apart-hotels, a retail shopping center and a casino. Next Tuesday, the Las Vegas Strip-based casino complex will start welcoming guests in phases. Previously this month, MGM Mirage announced that it posted a $750.4 million loss in the third quarter as a result of declining revenues, as it also devalued the accounting value of the $8.5 billion casino complex in Las Vegas.

Billionaire investor

Kirk Kerkorian, an Armenian-American billionaire, has declared that he considers to decrease his 37% MGM stake. The MGM Mirage share dropped 4.1% (45 cents), which is in accordance with declining markets worldwide, as it closed at $10.56. Key equity indexes dropped approximately 2% from the highest rates in 13 months, together with the Dow 30.