Casino News

Icahn allegedly pushing for MGM Mirage bankruptcy

2009-04-17 13:49:59

Billionaire investor Carl Icahn is allegedly trying to persuade MGM Mirage to restructure its debts by filing for bankruptcy.

Sources apparently close to the matter told the Wall Street Journal that Mr Icahn and Oaktree Capital Management have told the casino giant they will support an attempt to restructure debt in this manner.

The newspaper could not get comment on the issue from either Mr Icahn or Tracinda Corp, an investment company run by Kirk Kerkorian, who owns approximately 53 per cent of MGM Mirage.

Mr Kerkorian could stand to lose all of his investment in a bankruptcy filing, the Wall Street Journal said.

Earlier this week, MGM Mirage announced that it had received support from banks to enable it to fund all of the current construction costs of its latest casino project, CityCenter in Las Vegas.

It can now pay the $70 million sum by today's (April 17th) deadline.

In December, the company said that CityCenter was to accept applications for 12,000 job vacancies in what it suggested was the largest recruitment drive in Las Vegas history.