MGM's Oz
MGM's outlook is bleak. Its partner on the $8.6 billion City Center development, a Dubai investor, filed a lawsuit today against MGM and will unlikely make a $100 million debt payment that is due on Friday. The lawsuit and pending debt problems will throw City Center in doubt. City Center is a huge development. It is on 67 acres in the heart of the Las Vegas Strip. It is a mix of casino resorts, condos and retail space. It is huge, and even in its unfinished condition, it dominates the strip. This project needs to be deleveraged and it needs an economic recovery. I would be surprised if MGM ends up finishing the project.