NEW YORK (Reuters) – City Center, an $8 billion Las Vegas project owned by MGM Mirage (MGM.N) and Dubai World, has hired counsel to advise on a possible bankruptcy filing, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The casino operator, controlled by billionaire Kirk Kerkorian, and its joint venture partner Dubai World are likely to struggle to pay $220 million due Friday on CityCenter, the newspaper said.
When contacted by Reuters, a spokeswoman for MGM Mirage declined comment.
CityCenter has hired Dewey & LeBoeuf to prepare for a possible Chapter 11 filing as soon as this weekend, depending on the outcome of talks between MGM Mirage, the lenders and Dubai World, the people told the WSJ.
Dubai World said on Monday it sued MGM over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM filing constitute events of default under the joint venture.
CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip and it is slated to open late this year. MGM and Dubai World have $500 million to fund before a $1.8 billion bank facility becomes available in May.
The casino operator, controlled by billionaire Kirk Kerkorian, and its joint venture partner Dubai World are likely to struggle to pay $220 million due Friday on CityCenter, the newspaper said.
When contacted by Reuters, a spokeswoman for MGM Mirage declined comment.
CityCenter has hired Dewey & LeBoeuf to prepare for a possible Chapter 11 filing as soon as this weekend, depending on the outcome of talks between MGM Mirage, the lenders and Dubai World, the people told the WSJ.
Dubai World said on Monday it sued MGM over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM filing constitute events of default under the joint venture.
CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip and it is slated to open late this year. MGM and Dubai World have $500 million to fund before a $1.8 billion bank facility becomes available in May.
