MGM seeking buyers for assets

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MGM MIRAGE: Looking to offload assets to keep CityCenter project on track. (Getty Images)

Casino owner MGM Mirage is courting buyers for its facilities in Detroit and Biloxi, Mississippi to meet looming debt obligations, sources say.

The company, which is saddled with $13.5 billion of debt, was sued by Dubai’s global investment flag bearer, Dubai World, on March 23, in a move aimed at protecting the interests of its subsidiary, Infinity World - a joint venture partner with MGM in the development of the CityCenter project in Las Vegas.

The lawsuit alleged that MGM's admissions in papers filed with US regulator, the SEC, on March 17, constituted a breach of the CityCenter joint venture agreement and put the $8.5 billion CityCenter development project at risk.

MGM subsequently made a $200 million payment – including $100 million on behalf of Infinity World – to keep the financing for the project ticking over.

The Wall Street Journal reported on Saturday that Las Vegas-based MGM is holding a "private auction" to find takers for two of its dependable cash cows - the MGM Grand Detroit and Biloxi's Beau Rivage casino. 

A successful sale of the two operations could yield up to $2 billion and markedly improve MGM's cash-to-debt ratio ahead of a May 15 deadline imposed by its lenders to reduce debt.

The newspaper also said its sources indicate that Australian billionaire and gambling magnate James Packer is considering getting involved with the troubled CityCenter real estate project.

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