Now MGM Mirage is under the threat of the bankruptcy, in spite of it can save the City Center development. This is the Wall Street assessment which has been known in a day after MGM Mirage and its partner Dubai World accepted the plan of fully funding City Center. The experts says that MGM Mirage should sell several of 9 casinos or some of the holdings in order to prove its liquidity, because the company has $13.5 billion debt.

The financial covenants of the company has got the second waiver from the lenders concerning of the plans of developing City Centre. In such a way in 15 of May MGM Mirage will face a deadline for restructuring its finances, otherwise the risk of defaults can cause the bankruptcy.

Andrew Zarnett, Deutsche Bank analyst, announces that investors are waiting for sale of hotel-casino, such measures according to his opinion will help to reduce the debt and diminish the risk of bankruptcy. But the official position of the company is another, MGM Mirage says it has enough options to solve the problem without sale the casinos.

The investors were glad to know the plan of the City Center developing and it caused the great success on the New York Stock Exchange. So the company’s stock opened about 60% higher. On Thursdays MGM Mirage traded approximately 72.5 million shares that meant it ended at $8.38, which is equal to 35.6%. But Robert LaFleur, gaming analyst, thought he was quite surprised by the recent increase said it couldn’t play a big role and the fact of avoiding the bankruptcy couldn’t guarantee extension of the stock value.

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