Updated from 1:40 p.m. EDT
Shares of MGM Mirage (MGM) rebounding Friday after news that billionaire investor Carl Icahn is pushing for the company to file for bankruptcy.
MGM Mirage, which traded as much as 18% lower on Friday, managed to close up to 6.8% to $6.30.
The Wall Street Journal reported late Thursday that Icahn and private-equity fund Oaktree Capital Management want MGM to restructure its more than $13 billion in debt as soon as possible.The newspaper also said Icahn and the fund have separately bought hundreds of millions of dollars in MGM debt in the past few months. MGM, majority owned by another billionaire investor, Kirk Kerkorian, also has had a dispute with Dubai World, its partner in the $8 billion City Center project on the Las Vegas Strip. MGM Mirage announced Friday afteroon that it has provided $70 million to cover the current construction costs for CityCenter. The payment includes $35 million that should have been funded by Infinity World, a subsidiary of Dubai World, the company said. "MGM Mirage remains dedicated to supporting the completion of CityCenter, recognizing the significant long-term value this development will provide to Las Vegas and the state of Nevada," said Jim Murren, chairman and CEO. "We are continuing to engage in constructive discussions with our senior lenders and the CityCenter lending group..." Janney analyst Brian McGill said in a note to investors that he believes MGM os "in survival mode. We think the Las Vegas Strip remains challenging," he said. Elsewhere among casino companies, Ameristar Casinos (ASCA) was up 2.2% to $14.16.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV