MGM Mirage Casino Completion Deal Forces Trading Halt
Trading in shares of MGM Mirage was halted yesterday an hour before the closing bell, as news spread that the casino gambling operator had resolved its differences with Dubai World regarding the CityCenter project. Investors looking to cover short positions found themselves odd man out in the game of musical chairs, as the gaming and casino company opened today up almost fifty percent from the stop yesterday.
After months of teetering on the edge of bankruptcy for both itself and CityCenter, MGM Mirage announced a revision of its agreement with Dubai World and new commitments by lenders that will guarantee completion of the enormous casino-resort complex.
Dubai World agreed to drop its breach-of-contract suit against MGM, and will reimburse MGM for covering payments made on behalf of the partnership since the suit was filed over a month ago. MGM Mirage agreed to post the Circus Circus casino and adjacent land as collateral to ensure Dubai it would meet obligations.
As news broke yesterday of the deal, trading was stopped on MGM, shortly before 3 pm., at $6.18. Opening price today was $8.98, trading in massive volume as profit-takers led to a gradual slippage down to $8.38, still a single-day increase of over thirty-five percent.
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