Las Vegas, NV – MGM Mirage announced April 17 it had provided $70 million to continue the construction of its ambitious CityCenter development in Las Vegas amidst media reports that investor Carl Icahn was urging management to file for Chapter 11 bankruptcy.
The payment, which MGM said included $35 million to cover a payment from its partner, Infinity World, a subsidiary of Dubai World, keeps the $8 billion CityCenter project on track at a time when the recession has rocked Las Vegas’ major hotel-casino operators. “MGM is determined to make CityCenter a success and we continue to review with our partners all options to keep CityCenter fully funded,” said Jim Murren, chairman and CEO of MGM Mirage.
The company had no immediate comment on reports that Ichan bought up scores of MGM Mirage corporate bonds and was pushing the company into bankruptcy. According to a Wall Street Journal report, sources said Ichan and equity fund Oaktree Capital Management told MGM Mirage’s leadership they would support a Chapter 11 restructuring.
MGM Mirage operates 11 hotels in Las Vegas, including Mandalay Bay Resort and Casino, the Bellagio and The Mirage. While CityCenter is primarily a residential, retail and boutique hotel complex, MGM is a major purveyor of meeting and exhibition space in the city. The flagship trade show venue is the Mandalay Bay Convention Center, with 934,731 square feet of prime exhibit space. The center is ranked No. 11 in Trade Show Executive’s Directory of the World’s Top Convention Centers.
Reach Jennifer Muna, director of trade show sales, Mandalay Bay Resort and Casino, at (702) 632-4861 or firstname.lastname@example.org