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Embattled Las Vegas Mega Project to Finish

Posted by: Nate Berg

1 May 2009 - 6:00am

The $8.5 billion CityCenter casino complex designed for the Las Vegas Strip had been stalled over financial issues between two of the funders, but now an agreement has been reached and the mega project is set to complete on time.

"MGM Mirage said Dubai World, the investment arm of the Dubai government, would drop a lawsuit it filed against the Las Vegas-based casino company, which is majority owned by investor Kirk Kerkorian.

The pact secures MGM Mirage's payment obligations for construction costs with its Circus Circus Las Vegas casino and adjacent land. MGM Mirage and Dubai World each agreed to fund their remaining payments for CityCenter with letters of credit, and the lenders agreed to immediately fund $1.8 billion to finish the project, rather than wait until each partner had fully paid its share.

The company said CityCenter is now on track to be open by December 2009, with the Harmon Hotel & Spa opening in 2010."

Full Story: MGM Mirage, Dubai reach pact to finish CityCenter
Source: Associated Press, April 29, 2009
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There is lots of theory, and lots of wonderful mathematics, and even lots of dealmaking. But the financial engineers are not real engineers who take responsibility for the bridges that fall down. They have no notion of a safety factor.
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