MGM CASINOS GOING BELLY UP? - Posted by KatA 

The MGM Mirage is scrambling to avoid chapter 11, but things aren’t looking good. The strip’s largest casino owner reported a $1.15 billion fourth-quarter loss after shrinking gambling revenue forced them into major financial re-structuring. While MGM was given a two month reprieve to restructure its debts, auditors have serious doubts in whether or not the company will survive. Banks granted the company waivers on the $7 billion bank-loan facility until mid may, but many feel that this will not be long enough for the company to come up with the money. The company reported being in talks to avoid defaulting on their financial contracts but things are still up in the air. Compounding the company’s financial woes is the continued drop in tourist dollars coming into Las Vegas. Room occupancy has dropped from 93% to 85% and the room rates are now on average $31 less than a year earlier. All of this has lead to a continuing slide in MGM’s stock. Even on the days the DOW is starting to show improvement, MGM’s stock has continued to decrease, currently down .20 to $3.03 per share.