MGM Mirage (MGM) has offered to exchange a part of its $782 million 8.5% senior notes due next year for up to $500 million of 10.00% Senior Notes due 2016. This swapping would harness liquidity and also allow the company to extend the time to repay its debt at the cost of a somewhat increased debt level and interest expenses. The exchange offer will expire September 24, 2009, unless extended by MGM. For each $1,000 in principal amount of existing notes tendered and accepted, the holder will receive $1,175 principal amount of new notes, of which $50 in principal amount of New Notes represents early participation payment only to those who tender notes before the close of business on September 10, 2009. Casino operator MGM Mirage has been severely impacted by the recession. The company reported a loss of $212 million in the second quarter as ...

Shares of MGM Mirage Inc. (MGM) shot up a day after the casino giant said it no longer faced a bankruptcy concern.

As the global economic slump took the shine off the once thriving gambling industry in Las Vegas, MGM Mirage warned in March that there was "substantial doubt about its ability to continue as a going concern" due to mounting debts. The stock had slumped below $2 at the height of bankruptcy concerns.

Billionaire investor Carl Icahn has been pressuring the company to restructure its $13.5 billion debt through bankruptcy protection.

In a filing with the Securities and Exchange Commission late on Tuesday, MGM Mirage said that the $2.6 billion it raised by selling debt and equity last month will enable it to retire its short-term debt that had given rise to the going concern clause.

This would certainly bring some relief to Kirk

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The market had another off day, as the Dow was down -2.18%.  The NASDAQ closed at 1664.19 while the S&P closed at 883.92, as the two indexes were down -3.01% and -2.69% respectively.  The 10-year yield finished the day at 3.116% as prices on treasuries rose.  Crude oil was down today and settled at $58.02, while gold was up at the end of the day settling at $925.9o. 

In earning’s news, Freddie Mac [FRE: 0.80, -0.06 (-6.98%)] announced afterhours yesterday a loss of $9.85 billion, or $3.14 per share in the first quarter, stretching the loss from a year ago of $151 billion.  The government controlled mortgage lender saw revenue decline from $1.41 billion last year to $771 million this year as Freddie Mac continued to suffer from rising mortgage delinquencies and losses stemming from it owning mortgage backed securities.  Provisions to cover credit losses rose to $8.8 billion from $7 billion

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After MGM Mirage (MGM) gained some breathing space by amending its senior credit facility, the casino giant said it would raise $2.5 billion through stock and bond offerings in order to pay down a chunk of its debt obligations.

The company, which is battling the biggest slowdown in the history of gambling in Las Vegas, said it would privately place $1.5 billion senior secured notes in the junk bond market and offer 81.0 million common shares for gross proceeds of about $1 billion.

The modifications made with its creditors will allow MGM to permanently waive potential defaults from the term "going concern" in its financial statements for fiscal years 2008 and 2009. The company was earlier handed a deadline of June 30 to formulate a restructuring plan that would help it stay afloat in the ongoing crisis.

The sale of the two-part senior secured bonds

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The markets were up today, with the S&P closing 869.90.  The NASDAQ was up 0.16% closing at 1673.07, while the Dow Jones was up 0.07% closing at 8131.33.  Crude contracts were up settling at $50.33, while gold futures were down in trading, settling at $867.90.  The 10-year price was down, as the yield closed up finishing at 2.949%.

Citi [C: 3.65, -0.36 (-8.98%)] reported earnings this morning, posting its first net profit in over a year.  Citi beat analyst estimates, posting a loss of $0.18 cents a share net of one times, or $966 million, as opposed to the streets predicted loss of $0.32 cents a share.  Citi’s revenue almost doubled from a year ago, reaching $24.79 billion, as Citi has taken advantage of the down market seeing significant gains on investments that they purchased at the peak of the credit crisis.  Citi has been strengthening institutional clients in

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MGM Mirage (MGM) shares slumped at the open on Friday following reports that activist investor Carl Icahn was pressing the distressed gambling giant to restructure its $13.5 billion debt by seeking bankruptcy protection.

Late Thursday, The Wall Street Journal said Icahn and private-equity fund Oaktree Capital Management have been pursuing MGM Mirage to clean up its balance sheet as soon as possible since last month. Citing sources familiar with the matter, the paper said the two investors, who have separately amassed hundreds of millions of dollars in MGM Mirage debt in recent months, stressed bankruptcy as the best option.

Icahn's strategy endangers the majority stake billionaire investor Kirk Kerkorian owns in MGM. Kerkorian's 53% stake would amount to nothing if the company files for bankruptcy, giving secured debtholders priority over shareholders.

MGM Mirage, which has been working hard to avoid bankruptcy, has to make a new

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MGM Mirage (MGM) said it may default on its debt this year if the economy does not rebound and delayed the filing of its annual report.

The casino operator owned by billionaire investor Kirk Kerkorian said it was in compliance with loan covenants under its senior credit facility as of Dec. 31 but will be forced to breach them if the recent adverse conditions in the economy in general -- and the gaming industry in particular continue.

The Las Vegas-based company has suffered over the last year as gaming revenues slumped with fewer gamblers frequenting slot machines in the wake of the global recession. Last week, MGM Mirage borrowed the remaining $842 million in its revolving credit facility and is now negotiating with senior creditors for a covenant waiver or amendment.

The company postponed filing its fourth-quarter and annual report until March 17. MGM Mirage also

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Billionaire investor Kris Kerkorian is selling his 6.5% stake in Ford (NYSE:F) for a big loss. Andrew Snyder says it would be crazy for the average investor to follow Kerkorian. He says Ford is dirt cheap right now, and could be in line for a 50% up-move.

This from Today’s Financial News:

Sometimes you have to wonder what goes through the head of some of the world’s most renowned investors. Is it possible that billionaires make emotional moves just like so many other everyday investors?

While billionaires certainly make the same mistakes you and I make. I do not think that is the case with Kirk Kerkorian.

After shelling out a billion dollars to get his hands on a 6.5% stake of Ford (NYSE:F), Kerkorian and his investment vehicle, Tracinda, are backing away from their stance.

On Monday, Tracinda unloaded over seven million shares of

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