City Center, the $8bn-plus resort under construction in Las Vegas, won a crucial victory Wednesday when its lenders and owners struck a deal that guarantees the project will be finished.
The agreement comes just weeks after the project, owned jointly by casino giant MGM Mirage and Persian Gulf investment arm Dubai World, was on the verge of filing for bankruptcy protection and embroiled in a lawsuit. Dubai World filed a complaint against MGM Mirage alleging cost overruns and mismanagement after auditors in March warned about MGM Mirage's ability to continue as a 'going concern.'
Dubai World said Wednesday it is withdrawing a suit against MGM Mirage, and will resume paying its share of monthly construction costs. It will also repay MGM Mirage $135m the casino company paid to fund City Center after Dubai World skipped two of its payments.
Wall Street Journal