Chicago (Reuters) – MGM Mirage, which has warned it could breach its credit agreements this year if the economy doesn’t rebound, may break itself up to lure potential buyers as it races to raise the more than USD 1.5 billion it owes in bond payments and interest this year, The Wall Street Journal reported on on Saturday.
Citing unnamed people „familiar with the matter,“ the paper said buyers had been „sizing up“ several of the casino operator’s separate properties, including the Bellagio and MGM Grand Detroit.
„Basically everything is for sale,“ the newspaper quoted one anonymous source as saying.
MGM has said it is in talks with its bank lenders for a waiver on its loans or to amend the debts‘ covenants, but said there was no assurance that lenders will agree.
If the company is unable to amend terms or receive a waiver, its bank lenders could accelerate repayment of the loans and, under certain circumstances, defaults on its other debt may be triggered, MGM has said.