Casino Maxes Out Credit, Runs Out Of Time
March 4, 2009 by Tisa Silver
Filed under Finance
The credit crunch is taking a bite out of Las Vegas!
According to MarketWatch, MGM Mirage (Ticker: MGM) recently tapped all of its remaining capacity with one creditor for $842 million.
On top of maxing out the credit facility, yesterday, the company informed the Securities and Exchange Commission that it would not be able to submit its Form 10-K on time.
Photo by wcamlin, Courtesy of flickr
BTW – Late this afternoon, General Motors (Ticker: GM) made a similar announcement.
All publicly traded firms are required to submit annual reports via the SEC’s Form 10-K. Quarterly data must be submitted via the Form 10-Q.
Usually, the casino’s patrons have maxed out credit NOT the casino itself. The casino business was once believed to be recession-proof, but those days are long gone!
MGM Mirage’s stock fell 15 percent in response to the news. Shares closed at $2.21 which is dangerously low, but remains above $1.89, which was the low point of today’s trading session.
