Las Vegas woes: MGM Mirage facing bankruptcy?

[marmar]

from the Las Vegas Review-Journal:



SEC FILING: MGM Mirage in talks with lenders

Company says it will be in default if it can't alter payment structure

By HOWARD STUTZ
LAS VEGAS REVIEW-JOURNAL


MGM Mirage, the Strip's biggest casino operator and the state's largest private employer, could be facing a bankruptcy filing if it can't renegotiate better repayment terms with its lenders covering some $7 billion in loans.

In a filing Tuesday with the Securities and Exchange Commission, the company that operates 10 Strip hotel-casinos and is building the $9.1 billion CityCenter said it was discussing waivers or amendments with its lenders.

MGM Mirage said it would be in default under its senior secured credit facility if it cannot negotiate a better repayment structure. The action could filter down and put all of MGM Mirage's debt, which totals roughly $13.5 billion, into default.

In the filing, the company blamed the recession and the steep drop in consumer spending at casinos for its concerns about not being able to make its debt payments.

"If (MGM Mirage) is unable to negotiate such a waiver or amendment, a majority of the lenders under the senior credit facility could accelerate repayment of borrowings ... cross defaults could be triggered," the company wrote in the SEC document.

Wall Street has begun speculating that MGM Mirage might have to file for Chapter 11 bankruptcy protection to force a restructuring of its bank loans and corporate debt. .......(more)

The complete piece is at: http://www.lvrj.com/business/40703237.html