Just last spring, MGM Mirage was publicly castigated and compelled to make major concessions by its Dubai World partner within the development of the CityCenter casino complex at the Las Vegas Strip. Now, with MGM on more stable financial ground, the large casino, gambling, and resort project was shaken by news that Dubai cannot honor its debt service.Dubai World, the investment arm for the Dubai emirate city-state, said Wednesday it needed a six-month moratorium on interest and payments against its $60 billion in debt, causing ripples inside the international financial community. Casino stocks were particularly hard hit, as Dubai's close ties to MGM worried investors.
MGM officials denied Dubai's troubles would have an effect on the gambling empire, and asserted that CityCenter is on pace to open this year.
"CityCenter is fully funded, on schedule and able to begin welcoming guests starting next week," said an MGM spokesman.
Abu Dhabi, which controls nine-tenths of the oil revenue within the United Arab Emirates, has said that it and the central UAE bank won't allow default by Dubai, guaranteeing the debt could be repaid.
MGM Mirage stock fell over four percent Friday at the news, because the market basically retreated about two percent.
Published on November 28, 2009 by A.J.Maldonado
Read More... [Source: MGM Casinos in the News]
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