MGM MIRAGE says it may default on debt

Mar 4, 2009 2:12 AM
Staff & Wire Reports |

Casino operator MGM MIRAGE says it believes it will break loan covenants this year unless the economy turns around and more people gamble.

The Las Vegas-based casino operator said in a Securities and Exchange Commission filing on Tuesday that it will delay filing its annual report because it is still assessing its financial position and liquidity needs.

MGM MIRAGE says that if it breaks its covenants to lenders, it will default on its senior credit facility. The company says it has asked to modify the credit facility but doesn't know yet whether its terms will change.

MGM MIRAGE says its annual report will likely contain a report from its independent accountants about MGM MIRAGE's ability to continue as a company.

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