Thursday 26 March 2009

MGM Mirage plans to finish CityCenter

Las Vegas Gaming Wire

LAS VEGAS, Nevada -- A day after being accused by its joint venture partner of mismanaging the $9.1 billion CityCenter development, MGM Mirage said a lawsuit filed by Dubai World was "completely without merit" and the casino operator plans to complete the Strip development.

MGM Mirage attempted to quell nervous shareholders' fears after Dubai World, the investment arm of the Persian Gulf state, filed suit Sunday in Delaware Chancery Court asking for unspecified damages and seeking to be relieved of its obligations under the companies' August 2007 joint venture agreement.

MGM Mirage Senior Vice President of Public Affairs Alan Feldman Tuesday e-mailed a statement from the company before trading opened on the New York Stock Exchange and tried to deflect Dubai World's claims that question the viability of CityCenter.

"Dubai World is well aware of our written commitment to meet our funding obligations and that MGM Mirage has available cash to satisfy those obligations," Feldman said in the statement. "MGM Mirage is ready, willing and able to fund its share of the costs to complete CityCenter, including a required payment this week."

During MGM Mirage's fourth-quarter earnings conference call March 17, the company said it had $600 million in cash on hand. Three days later, the company collected another $600 million as the initial payment on the $775 million sale of Treasure Island to Phil Ruffin.

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