MGM MIRAGE pays up, work continues at CityCenter

Mar 27, 2009 8:53 PM
Staff & Wire Reports |

Thousands of construction workers, busy putting together the Las Vegas Strip's biggest project, CityCenter, breathed a sigh of relief Friday noon when MGM MIRAGE Inc. announced it would put up $200 million due in debt interest.

The payment included $100 million that was supposed to come from its partner, Dubai World, which a week ago filed suit in Delaware to relieve itself of the payment responsibility by charging that MGM MIRAGE had violated its partnership agreement.

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In making the Friday announcement, MGM MIRAGE said it intends to work with Dubai World, as well as its debt-holders in order to achieve a long-term solution.

"MGM MIRAGE believes that CityCenter is of vital importance to Las Vegas and the state of Nevada," Chairman and CEO Jim Murren said.

"We are doing our upmost to see that this project continues, keeping thousands of Nevadans employed. We will continue to make every effort to see that CityCenter is completed and becomes an even greater economic driver for the region," Murren added.

Earlier Friday, several news sources reported they expected the company to default on its interest payment, thus shutting down the project.

There was no immediate word from Dubai World officials relative to the MGM MIRAGE interest payment.