Kirk Kerkorian’s gambling empire MGM Mirage could be chopped into pieces, as the debt-strapped company races to negotiate new terms with lenders to avoid defaulting on its debts, according to people familiar with the matter.

Potential buyers have been sizing up a purchase of the Bellagio casino as well as the MGM Grand Detroit, one of a handful of casinos in the country that is performing well. MGM has discussed selling the Bellagio but so far could not garner an attractive price, according to people involved in the discussions.

“Basically everything MGM owns is for sale,” said one of the people familiar with the situation. The company recently agreed to sell its popular Treasure Island casino hotel in Las Vegas to casino magnate Phil Ruffin for $775 million.

MGM needs to raise more than $1 billion to fund what it regards as its future: a massive, 67-acre resort and residential project in Las Vegas called City Center. But it must reduce debt it built up this decade.

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