4/14/2009 4:22 AM
Brian Fey wrote:
That report is very misleading. MGM CC, is not saved just yet,though I think its heading in that direction. MGM is working with Dubai, to come to a long term solution. All that took place yesterday, was the banks allowed MGM to make their monthly payment on City Center, which they are required to do every month, along with Dubai World. Because of a disagreement and lawsuit, Dubai World skipped last month's payment, and they are also appear to be skipping this months payment as well. This new ruling by the bank, is letting MGM cover Dubai Worlds payment for the month also, so the project can stay on track. Because if Perini stops getting paid, all work will stop. But MGM does not have the means nor the money, to cover Dubai World's share of this project to the end. They can cover a few payments here and there, but they have to fine a common ground and a fair agreement with their partner on this project. Dubai World has submitted a proposal to MGM and the banks on what changes and demands must be met in order for them to start funding their share again. Hopefully a complete and permanent agreement can be reached very soon, before the May payment is due to Perini. MGM isn't out of the woods just yet, but they are on the right path, and they can see a big open field just past the woods their currently in. Reply to this
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That report is very misleading. MGM CC, is not saved just yet,though I think its heading in that direction. MGM is working with Dubai, to come to a long term solution. All that took place yesterday, was the banks allowed MGM to make their monthly payment on City Center, which they are required to do every month, along with Dubai World. Because of a disagreement and lawsuit, Dubai World skipped last month's payment, and they are also appear to be skipping this months payment as well. This new ruling by the bank, is letting MGM cover Dubai Worlds payment for the month also, so the project can stay on track. Because if Perini stops getting paid, all work will stop. But MGM does not have the means nor the money, to cover Dubai World's share of this project to the end. They can cover a few payments here and there, but they have to fine a common ground and a fair agreement with their partner on this project. Dubai World has submitted a proposal to MGM and the banks on what changes and demands must be met in order for them to start funding their share again. Hopefully a complete and permanent agreement can be reached very soon, before the May payment is due to Perini. MGM isn't out of the woods just yet, but they are on the right path, and they can see a big open field just past the woods their currently in.
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Thanks, Brian, for clearing that up.
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