MGM Mirage, the casino company majority-owned by L.A. billionaire Kirk Kerkorian, said it may not be able to stay in compliance with financial covenants under its senior credit facility this year.
Failure to comply would mean defaulting under debt agreements, MGM Mirage said in a U.S. regulatory filing. The Las Vegas-based company also postponed filing its fourth- quarter and annual report until as late as March 17.
MGM Mirage said it was in compliance with the covenants as of Dec. 31 and believes it will breach the financial covenants "if the recent adverse conditions in the economy in general -- and the gaming industry in particular -- continue," according to the filing.
Gambling revenue in Las Vegas, the biggest betting center in the U.S., fell the most on record last year, causing declining sales at MGM Mirage, the owner of 10 casino resorts in the city. MGM Mirage said last week it had borrowed the remaining $842 million in its revolving credit facility.
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