MGM Mirage rose 18 per cent in New York trading after the casino company won a waiver from lenders allowing a US$70 million ($118 million) payment on its CityCenter project without partner Dubai World.
The accord extends last month's agreement letting Las Vegas-based MGM Mirage pay both partners' nearest obligations,
due by April 17, the company says.
"MGM Mirage remains committed to finding a long-term solution to the financing of CityCenter to ensure the completion of this important project," the company said.
MGM Mirage climbed 95 cents, or 18 per cent, to US$6.25. Bloomberg News first reported the waiver April 10. The shares have almost tripled this month.
Dubai World, a state-owned investment company, has submitted a proposal to complete CityCenter and resume payments in exchange for concessions, say two people with knowledge of the discussions who declined to be identified because the negotiations are private.
Neither would provide details. The company sued and stopped funding its portion of construction last month after auditors questioned the survival of MGM Mirage, controlled by Kirk Kerkorian, 91.
"We cannot comment on specifics of our discussions but we continue to be fully committed to completing CityCenter and we continue to work with our partners and the lenders to seek a solution," George Dalton, Dubai World's general counsel, said April 10 in an emailed response to questions.
MGM Mirage, the largest casino operator on the Las Vegas Strip, faced a deadline yesterday to win approval from banks to cover the next payments.
- BLOOMBERG
