MGM Mirage May Default on Debt

MGM Mirage Inc., the gambling company owned by billionaire investor Kirk Kerkorian, said Tuesday that it may default on its debt amid development of its biggest casino project ever, the $8.6-billion CityCenter in Las Vegas.

MGM Mirage owns the MGM Grand casino and hotel in downtown Detroit.

Unless the economy turns around and more people start gambling again, the Las Vegas-based casino company believes it will break its loan agreements this year, it said in a filing with the Securities and Exchange Commission.

That would mean a default on its senior credit facility, which MGM has asked to modify.

MGM Mirage will delay filing its annual report until March 17 because it is still assessing its financial position and liquidity needs, the company said in Tuesday's unscheduled filing. One factor in the delay, the company reported, was its decision last week to tap $842 million of its $4.5-billion senior revolving credit agreement to cover general expenses.

For the complete story, please see Oskar Garcia, MGM Mirage casino firm says it may default on debt, The Detroit Free Press, March 4, 2009.