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MGM Mirage says it needs more time to file annual report
Tuesday, March 3, 2009 | 2:54 p.m.
Sun Archives
- The state of our engine (3-1-2000)
- MGM Mirage wants to tap $4.5 billion credit (2-27-2009)
- MGM, Dubai World said in talks with Deutsche Bank (2-23-2009)
- For strapped casino giant, sale provides sure cash (12-16-2008)
- MGM Mirage launches international gaming division (12-9-2008)
- New CEO says he's ready to lead MGM Mirage (11-18-2008)
- Lanni exits at perilous time as industry faces hardship (11-16-2008)
In Today's Sun
MGM Mirage today said the company needs more time to file its 10-K, or annual report, so that it can assess the company's cash needs in light of the worsening economy and "instability in the capital markets."
Some observers expected MGM Mirage to seek an extension of time from the Securities and Exchange Commission to file this document, which was due Monday and is required of all companies with public stock.
In a SEC filing today, the company said it was evaluating the effect of its recent move to tap $842 million in remaining cash available under a $4.5 billion credit line.
MGM Mirage also said the company will likely default on its bank loan if the economy continues to decline, which could trigger immediate repayment of those and other debts. The company said it was attempting to seek a waiver from its banks to avoid such a scenario and that no such agreement was guaranteed.
"To ensure a thorough and up-to-date discussion of its financial position and liquidity needs, (MGM Mirage) expects to include additional information about its liquidity and financial position in its Form 10-K, including a detailed discussion of the impact of the matters described above," the filing continues.
Many investors viewed the cash withdrawal as a sign that the company will file for Chapter 11 bankruptcy in order to drastically reduce a mountain of debts coming due over the next few years. Reducing debts might free up cash that could be used to finish the company's half-owned CityCenter — money that is now going toward debt payments.
Delaying the company's annual report might also give MGM Mirage more time to come up with additional sources of cash, such as negotiating a property sale, observers say.
Discussion: 9 comments so far…
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And you people thought the Mob was the crooks.
It's simply amazing that Mr. K. is in this situation. Who would've thought? It's a sorry state of affairs. I cannot imagine City Center moving towards coming on line at a worse time. Sad.
Boomers have lost significant value in their 401 K's. Their homes continue to lose value and cannot be put up for sale at this time. Yet retirement still looms. how do boomers cope? By saving every penny, by not using the stock market to do so, and by cutting out all unnecessary expenses. Resorts will not prosper, and maybe wither away from lack of business. There is a new fugality that will affect everyone.
There's a saying around town: Vegas used to be run by the mob, now it's run by crooks.
Bringing Michael Jackson's show to the Mirage & Marquee Sign would be a good start to change the MGM/Mirage's BORING shows.
I thought Bobby Bladwin and Jim Murren were geniuses who could do no wrong? Looks like a classic case of these 2 guys taking credit when everything goes right but blaming other things when they go wrong. But those 2 will continue to make tens of millions of $$$ per year and layoff their employees at the same time.
Baldwin? Who cares what he does or doesnt do? He's too busy eating at the Fix restaurant these days.
I wrote 2 years ago that City Center was a disaster waiting to happen. On CBSMarketwatch.com So I was pilloried and excoriated by hundreds of respondents. Now, with the stock worth barely 3 bucks, it's obvious that MGM is walking out on the plank. Its only hope is to sell more properties, but how many Phil Ruffin's are out there? What do you do with an empty casino-a bus station? Terry Lanni bailed out just in time. Bye, bye MGM....
CityCenter does seemed doomed, it really is sad.