Dubai World Suing MGM Mirage Over CityCenter Complex
Dubai World is a real estate development company that is working with MGM in building an $8.6 billion CityCenter complex on the strip in Las Vegas. Earlier this week it was announced that Dubai World is suing its partner MGM Mirage about concerns that teh company will not be able to afford it. This affects the viability of the project.
Infinity World, a subsidiary of Dubai World filed the lawsuit in the Delaware Chancery Court. Currently MGM Mirage has over $13 billion in debt and there is a rumor that the MGM Grand in Detroit, Michigan is up for sale.
”What we are attempting to do is complete this project,” stated Dubai World group general counsel George Dalton. He added that the lawsuit is ”a very regrettable step,” but the company had no choice.
The CityCenter was reported to be a 67 acre development project. The CityCenter would include six towers, a casino, several boutique hotels, condos, entertainment, and a retail mall.
The MGM Mirage lost about $1.15 billion in 4Q 2008, but that was the first that the MGM Mirage had in 2008.
[via NYT DealBook]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry