MGM Mirage has won a waiver from its lenders allowing it to provide $200m in funding for its estimated $8.7bn CityCenter mega resort, enabling development to continue and averting potential bankruptcy of the project.
The payment covers $100m that was to have been paid by MGM's partner in the project, Dubai World, the sovereign wealth fund-backed investor. Dubai World sued t he casino operator controlled by billionaire Kirk Kerkorian this week for breach of contract after MGM warned it was at risk of defaulting on its loans.
MGM said it and Dubai World would have to pay another $800m in combined equity contributions before they could tap a $1.8bn credit facility to complete the building of the massive luxury resort, shopping mall and residential complex located between the Bellagio and Monte Carlo resorts on the glittering Las Vegas Strip.
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