Trouble for MGM Mirage

MGM Mirage recently sold Treasure Island Hotel & Casino for $775 million. On March 20, MGM Mirage completed its sale of Treasure Island Hotel & Casino (TI) to Ruffin Acquisition, LLC, for


MGM Mirage recently sold Treasure Island Hotel & Casino for $775 million. // (c) MGM Mirage
MGM Mirage recently sold Treasure Island Hotel & Casino for $775 million.

On March 20, MGM Mirage completed its sale of Treasure Island Hotel & Casino (TI) to Ruffin Acquisition, LLC, for $775 million. And, just four days later, it was announced that its CityCenter partner, Dubai-based Infinity World Development Corp., is suing the casino company over concerns that MGM Mirage’s statements about its financial condition are putting the massive CityCenter project at risk.

At the close of the TI sale, MGM Mirage received $600 million in cash proceeds and $175 million in secured notes. Thanks to the sale, MGM Mirage stated that it expects to report a substantial gain in the first quarter of this financial year. However, the company is currently dealing with more than $13 billion in debt.

TI, which is located on the Las Vegas Strip, features 2,885 recently renovated guestrooms and suites, as well as approximately 87,000 square feet of gaming space. Just down the Strip, MGM Mirage is currently constructing the massive, 67-acre CityCenter Complex, which is scheduled to open in December with Aria Resort & Casino, The Mandarin Oriental Hotel & Residences and Vdara. In January, MGM Mirage announced that it would delay the opening of CityCenter’s The Harmon Hotel & Spa and scrap the building of The Harmon residential condominiums due to flaws in construction.

Of the TI sale, MGM Mirage chairman and CEO Jim Murren said, "TI is in great hands with Phil Ruffin and we wish him and all of the property’s wonderful employees nothing but the best."

www.mgmirage.com

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