CityCenter, an $8 billion Las Vegas project owned by MGM Mirage
MGM Mirage, a casino operator controlled by billionaire Kirk Kerkorian, and state-owned investor Dubai World are likely to struggle to pay $220 million due Friday on CityCenter, one source said.
A bankruptcy filing could come as soon as Friday, the second source said.
CityCenter has hired the law firm Dewey & LeBoeuf to prepare for a possible filing, the sources said.
A spokeswoman for MGM Mirage declined comment when contacted on Thursday night after The Wall Street Journal first reported the potential bankruptcy filing.
Dewey & LeBoeuf also declined to comment.
A bankruptcy filing depends on the outcome of talks between MGM Mirage, Dubai World and lenders, said the sources, who sources asked to remain anonymous because the talks are private.
Dewey & LeBoeuf partner Martin Bienenstock is the lead counsel on the assignment, the second source said.
Bienenstock, who was the lead lawyer representing Enron Corp in its Chapter 11 case, is also currently working with General Motors Corp
Dubai World said on Monday it had sued MGM Mirage over the CityCenter development, asking Delaware Chancery Court to find that some financial disclosures in a recent MGM Mirage filing constitutes events of default under the joint venture.
CityCenter is a 67-acre residential, resort and retail complex on the Las Vegas Strip. It is slated to open late this year. MGM Mirage and Dubai World have $500 million to fund before a $1.8 billion bank facility becomes available in May.
(Editing by John Wallace)
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