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MGM could have to bail on creditors if the economy doesn’t pick up this year.

The casino operations could be broken u p and sold off to pay creditors of MGM’s company. It currently owes $1.5 billion this year in bond payments and interest.

MGM said it was talking to its bank lenders “for a waiver on its loans or to amend the debts’ covenants.” However, lenders haven’t agreed to the terms. If the lenders can’t reach an agreement with MGM, the company may have to default on other loans.

MGM owns the Bellagio as well as the Grand Detroit casinos. The economy has been particularly harsh to Las Vegas, despite casinos once being a “recession-proof” industry. It seems funny that money can sometimes seem like a better bet on the roulette table than in the stock market.

Las Vegas residential real estate has plummeted in value after just a year and a half ago it was touted as one fo the fastest growing areas in the country.

Jeremy

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