MGM appears all but out of its pickle (MGM)

Posted in General 
June 24th, 2009

MGM Mirage (NYSE: MGM) shares are up more than 8% in strong premarket trading after the company said there is no longer substantial doubt about its ability to function as a going concern.

The casino’s auditor’s in March started to worry about the company’s viability after it had delayed its annual report. Debt default was a possibility unless gambling revenue picked up.

Back in May, MGM completed a public offering that raised about $1.1 billion in proceeds, and the company made private placement of $650 million in senior secured notes. It also amended its credit facility. The company was able to pay off two notes due in 2009 in full.

- Mike Tarsala

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