Dubai won’t delay CityCentre: MGM Mirage
Casino operator MGM Mirage says its CityCentre joint venture with Dubai World, the investment arm of the Dubai government, is not affected by Dubai World’s request to delay repaying billions in debt and will still open on time.
Dubai World, which has about $US60 billion ($A65.7 billion) in debt, said on Wednesday it asked creditors if it could postpone forthcoming payments until at least May.
The news revived worries about bad debt and sparked concerns of a ripple effect around the global financial system. World markets dropped on Thursday when Wall Street was closed for the Thanksgiving holiday.
MGM representative Yvette Monet said in a statement the joint venture was unaffected by Dubai World’s announcement.
“CityCentre is fully funded, on schedule and ready to begin welcoming guests starting next week,” Monet said.
CityCentre is an $US8.5 billion ($A9.3 billion) casino complex in Las Vegas that is half-owned by Dubai World. The 27-hectare development of plush resorts, condominiums, a retail mall and one casino on the Las Vegas Strip will start opening in phases on Tuesday.
Earlier this month, MGM said it lost $US750.4 million ($A822 million) for the three months that ended September 30 because of falling revenue, and it wrote down the value of the CityCentre project.
Investor Kirk Kerkorian has said he may cut his 37 per cent stake in MGM.
aap
