MGM Grand Detroit Casino Off Market for Now
A report by the Detroit News says an official with MGM Mirage has confirmed the company's gambling venue in Detroit is no longer for sale. The MGM Grand Detroit failed to attract bidders in the range desired by MGM, and the easing of the recession has the organization less worried about finding immediate sources of cash.
According to the CEO of the Detroit casino, Lorenzo Creighton, the pool of potential bidders has declined since the idea first surfaced this past spring, and there haven't been "any buyers actively courting us for a while."
MGM had contracted with Morgan Stanley to find potential buyers and handle the sales of both the Grand Detroit and the Beau Rivage Casino in Mississippi. The company was under an urgent need for cash with the teetering on bankruptcy of its vast CityCenter complex, and preferred to sell casinos away from its core Las Vegas Strip resorts.
The Treasure Island casino had already been sold to Phil Ruffin for $775 million before the beginning of the year, and declining earnings and maturing debt put MGM in a position of almost certainly having to sell assets.
But reworking lending covenants helped ease the pressure on the casino operator, and the easing of the recession has allowed MGM officials to step back and examine other plans to handle the company's massive debt schedule.
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