Trading in shares of MGM Mirage was halted yesterday an hour before the closing bell, as news spread that the casino gambling operator had resolved its differences with Dubai World in regards to the CityCenter project. Investors trying to cover short positions found themselves odd man out within the game of musical chairs, because the gaming and casino company opened today up almost fifty percent from the stop yesterday.After months of teetering at the fringe of bankruptcy for both itself and CityCenter, MGM Mirage announced a revision of its agreement with Dubai World and new commitments by lenders that allows you to guarantee completion of the giant casino-resort complex.
Dubai World agreed to drop its breach-of-contract suit against MGM, and can reimburse MGM for covering payments made on behalf of the partnership for the reason that suit was filed over a month ago. MGM Mirage agreed to post the Circus Circus casino and adjacent land as collateral to verify Dubai it could meet obligations.
As news broke yesterday of the deal, trading was stopped on MGM, shortly before 3 pm., at $6.18. Opening price today was $8.98, trading in massive volume as profit-takers ended in a steady slippage right down to $8.38, still a single-day increase of over thirty-five percent.
Published on April 30, 2009 by VirginiaMaddox
Read More... [Source: MGM Casinos in the News]
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