Auction of MGM Signature Towers Sets New Record Low Comp Values

I recently attended the public auction held to sell 20Chapter 11 bankruptcy filings as they struggled to find
units in the three MGM Signature towers located justalternative financing. MGM Mirage has financial
off the Las Vegas strip. The auction was held on Aprilcovenants due to expire on April 29th and May 15th.
21st and was attended by about 125 people. All unitsThere has been speculation that they may need to sell
were sold.off some major assets, such as the Beau Rivage in
MGM has been forced to clamor for capital since itsMississippi or the MGM Grand Detroit. Just recently,
flagship project, the record setting City Centerhowever, investor Carl Icahn and private equity fund
development in Las Vegas, ran into funding difficultiesOaktree Capital Management have stepped up and
and innumerable construction setbacks and delays.acquired hundreds of millions of MGM Mirage bonds.
MGM's major financial partner in the deal, Dubai World,Should this deal go through it might save MGM Mirage
announced that they would not honor their obligationsfrom having to sell further assets in order to stay
to the project. This announcement brought the alreadyafloat.
struggling MGM Mirage corporation to the edge of