According to a Bloomberg report, the MGM Mirage has hired Morgan Stanley to evaluate bids for land-based casinos in Michigan, and Mississippi.
An unnamed source reported that there have been private discussions regarding the sakes of some assets. The MGM Mirage based in Las Vegas is also responsible for the MGM Grand in Detroit, as well as the Beau Rivage in Biloxi, Mississippi, and the Gold Strike in Tunica.
With debt mounting against MGM, a sale of some of these properties would likely offset some of the burden, and allow them to continue to focus on the construction of the City Center in Las Vegas.
Currently MGM faces lawsuits as Dubai World is suing them to remove their responsibility from the partnership, as MGM continues to fall under $7 Billion debt.
April 13 was the deadline to reach a plan of action in order to save the process of the City Center. Kirk Kerkorian, the 91 year old owner of MGM Mirage has been trying to keep it all together by any means possible. His latest move was to pay $200 million towards their debt which also included Dubai Worlds share of the funding.
Colony Capital LLC, a buyout company based out of Los Angeles, California has discussed possible investments in the newly created City Center.
To finish the construction on the City Center, $800 Million is required in order to obtain the $1.8 Billion loan in order to finish. MGM has declared that they can front their share, and there is speculation about the involvement of Gambling Magnet James Packer. Alan Feldman, spokesperson for MGM stated, “We have the money to complete CityCenter.”
It appears very likely that CEO James Murren will consider the sales of these companies in order to gain more ground in making up the debt. The Beau Rivage and MGM Detroit could grab between $1billion and $2 billion respectively.
