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March 4, 2009

UPDATED: MGM Mirage Misses SEC Filing

Posted by Hunter

MGM Mirage was due to file it's 10K quarterly report information with the SEC but instead, filed for an extension:

RJ: http://www.lvrj.com/business/40703237.html

Sun: http://www.lasvegassun.com/news/2009/mar/03/mgm-mirage-says-it-needs-more-time-file-annual-rep/

MGM Mirage is in an incredibly precarious position. If it cannot re-work its capital structure or sell off some additional properties, there may be no option other than Chapter 11 - almost unthinkable for a company that just a few years ago was the king of The Strip.

Principal shareholder Kirk Kerkorian has seen his stake shrink from almost $10 billion to somewhere just shy of $400 million.

Update: MGM Mirage's Jim Murren has sent a letter to employees about the company's financial condition: http://www.lasvegassun.com/news/2009/mar/03/mgm-mirage-chairmans-letter-employees-about-compan/


Categories: Bellagio, Business of Gaming, Las Vegas Strip, MGM Resorts International
Tags: lasvegas, mgmmirage, vegas


Comments

Read archived comments (5 so far)
March 4, 2009 10:49 AM Posted by Anthony

Well, I guess we can add Riveria to the mix. They received a technical default from Wachovia Bank.

http://www.lasvegassun.com/news/2009/mar/04/riviera-gets-notice-default-stock-tumbles/

March 4, 2009 11:04 AM Posted by David McKee

It may be too soon to read anything into the RIV filing. According to a statement by William Westerman, Wachovia was imposing terms that would have allowed it to siphon money directly from Riviera Holdings' bank account in the event of any default whatsoever. The Riviera is really, really struggling but it sounds like Westerman's got a legitimate beef.

March 4, 2009 7:38 PM Posted by GregoryZephyr

In some ways I feel sorry for these companies. Banks were showering companies with loan offers. There was so much money available but it was almost always short term. So, now that companies took the money expecting to be able to revolve it forever like a credit card, the banks yank the rug out from under them and refuse to lend or only under impossible conditions. I know, I know, none of these companies were "forced" to take on these debts. But, that's like the wife taking the husband to a strip club and then telling him not to spend money there.

March 9, 2009 3:31 AM Posted by detroit1051

LV Sun:
"Some experts say the company would need to sell the Bellagio for more than $3 billion to get meaningful debt relief. That’s more than seven times the property’s historical earnings. If the Bellagio earns less this year, as expected, MGM Mirage risks getting less debt relief in a sale. If MGM Mirage plays hard, the buyer risks acquiring the property at a higher multiple of earnings."

Imo, it will be years before MGM can support two flagship properties, ARIA at CityCenter and Bellagio. Bellagio has to be sacrificed if its sale can help CityCenter open and survive.
http://www.lasvegassun.com/news/2009/mar/09/some-casinos-might-be-sale-pricing-them-tricky-bus/

March 12, 2009 6:10 PM Posted by Mark D

Norm! is spreading a rumor that MGM is in talks to sell the Monte Carlo to Light Group founder Andrew Sasson.