As you know, we have been watching developments with respect to the fluid situation that is Las Vegas. It is not pretty, fellow hedonists, and we are worried that classless venues for deniable debauchery might go quietly into the night if something is not done immediately. Towers are crashing down, people, and it is time to start writing Congresscritters. This naked aggression against sin will not stand.
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.
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.
MGM Mirage casino co. says it may default on debt [Associated Press]