New York (Reuters) - Harrah's Entertainment Inc, one of the world's largest casino operators, said on Tuesday it could not guarantee that it will generate enough cash to meet its debt payments due to a deep recession. The operator of 53 casinos may not be able to borrow to fund its operations, and it may have to sell assets if it is unable to pay its debt, according to a U.S. Securities and Exchange Commission filing.
Chicago (Reuters) - MGM Mirage, which has warned it could breach its credit agreements this year if the economy doesn't rebound, may break itself up to lure potential buyers as it races to raise the more than USD 1.5 billion it owes in bond payments and interest this year, The Wall Street Journal reported on on Saturday. Citing unnamed people "familiar with the matter," the paper said buyers had been "sizing up" several of the casino operator's separate properties, including the Bellagio and MGM Grand Detroit.
Las Vegas (AP) - MGM Mirage Inc., the gambling company owned by billionaire investor Kirk Kerkorian, said Tuesday that it may default on its debt amid development of its biggest casino project ever, the USD 8.6 billion CityCenter in Las Vegas. Unless the economy turns around and more people start gambling again, the Las Vegas-based casino company believes it will break its loan agreements this year, it said in a filing with the Securities and Exchange Commission.
Trump Entertainment Resorts, the casino operator, said on Wednesday it won more time from its lenders to negotiate or make interest payments on its debt. The company has obtained a forbearance agreement from the holders of about 70 percent of the value of 8.5 percent senior secured notes due 2015, on which the company missed interest payments in December. It also announced a forbearance agreement from lenders under the company’s USD 490 million senior secured term loan.
New York (Reuters) - Prices of U.S. casino companies' bonds are collapsing, a sign more bankruptcies may be on the way as lenders take flight and high fuel prices curb travel to gambling resorts. Investors have lost an estimated 14.2 percent on casino bonds year to date, the second-worst performance of any junk-rated sector after diversified media companies, which are down about 15.9 percent, according to a new report by JPMorgan.
