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.
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