James Murren, who took over the role of chairman and CEO of MGM Mirage in November, has today released plans for the dramatic reduction of the company's debt pile. Like so many other casino operations in America the company is drowning in a sea of debt and while there have been sales of peripheral assets the company is now willing to consider the sale of more casinos.
As well as the potential for more asset sales, the company will look at some stage to refinance the company's debt which could see market purchases at discounted values as well as the redemption of stock via tender offers. Either way there are plans in place to reduce the debt burden which has held back the company for many months and put its future in some jeopardy.
However, those who believe that James Murren has an easy job on his hands could be in for a serious shock in due course. Despite the good intentions of the new chairman and CEO it could prove difficult to reduce the company's debt quickly enough to pacify the group's bankers.
Thankfully the new addition to the management team has already cut dead the company's expansion plans which had still been ongoing despite the massive debt pile which had built up over the years. Whether he will be ultimately successful in his goal to revitalise the group remains to be seen.
James Murren, who took over the role of chairman and CEO of MGM Mirage in November, has today released plans for the dramatic reduction of the company's debt pile. Like so many other casino operations in America the company is drowning in a sea of debt and while there have been sales of peripheral assets the company is now willing to consider the sale of more casinos.