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Sat 13 Mar 2010 08:14 AM

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MGM, Dubai World’s CityCenter faces contractor's suit

Contractor for Las Vegas venture plans to file $492m-worth lien claims.

MGM, Dubai World’s CityCenter faces contractor's suit
CITYCENTER: The $8.5bn CityCenter opened in December.(Getty Images - for illustrative purposes only)

MGM Mirage and Dubai World said the primary general contractor for their Las Vegas joint venture CityCenter intends to file mechanics’ liens claiming about $492m.

“CityCenter believes that its actual obligation to the general contractor is substantially less than the amount claimed and that it is also entitled to significant offsets against the claimed amount,” MGM Mirage said on Friday in a regulatory filing.

“CityCenter intends to pursue all of its rights and remedies against the general contractor, including arbitration.”

The $8.5 billion CityCenter, 67 acres of hotels, condominiums, gambling and shopping linked by monorail, opened in December.

CityCenter “believes that it has significant claims against the general contractor” over the unfinished Harmon Hotel component, where work stopped in January 2009 because of construction defects, according to the filing.

CityCenter obtained a six-month amendment to its credit facility that allows for additional construction liens that are “more than sufficient”, according to the filing. The mechanics’ lien may be filed within 15 days.

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