Colony Quits MGM Mirage Deal Talks (Excerpt)
Colony Capital LLC has broken off talks with struggling MGM Mirage about a potential investment that could have given the casino company cash it needs to meet its looming financial obligations.
The collapse of talks with Colony means that MGM Mirage must find other ways to service its $13.5 billion in debt, as well as fund payments on its City Center project, an $8.6 billion development on the Las Vegas Strip.
Colony, a Los Angeles-based investment firm, had been discussing a possible joint investment with Crown Ltd., the Australian gambling company controlled by James Packer. Crown has also backed away from investing in MGM Mirage for the time being. A Crown spokesman wasn't immediately available for comment.
MGM Mirage, which is controlled by investor Kirk Kerkorian, now appears to be focused on negotiating a deal with its lenders that would give it some breathing room, people familiar with the situation said.
The Las Vegas company has said it is pursuing many options, including talks with other investors. "We continue to have discussions with investors and will not address details of any specific party," said MGM Mirage spokesman Alan Feldman.
TAMARA AUDI Source:WSJ
- April 10,2009