MGM CityCenter says it is not affected by Dubai credit crisis.
The Dubai credit crisis is threatening the good order of the global economic system. Among potential casualties who might incur damages from Dubai's troubles: casino gambling.
Namely the $23 billion casino and hotel company MGM Mirage.
CityCenter
Currently under construction on the Las Vegas Strip is the new
MGM CityCenter , an $8.6 billion project. Dubai World, which is the investment arm for the Dubai
emirate city-state, owns 50% of the casino project.
Dubai World spun the financial world in chaos last week when it announced it needed a 6-month moratorium on interest and payments against its $60 billion in debt. Does this put CityCenter at risk?
MGM Comments
Casino stocks were hit hard as investors were concerned of
the possible effect the Dubai crisis might have regarding the project. Dubai World controls 9.5 percent
of MGM Mirage shares.
In response, MGM Mirage said its CityCenter project would not be affected, even though a joint venture with Dubai World. CityCenter is said to be on pace to open still in 2009.
Recent Memories
It is interesting
to recall that In March it was Dubai that was worried about MGM's managing of
the CityCenter project.
Dubai World was in the process of suing MGM Mirage through its Infinity World subsidiary amid concerns about the project's viability.
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