"The country's 18 largest casino companies -- including giants like Harrah's Entertainment Inc. and Las Vegas Sands -- are buckling under the weight of more than $65 billion in long-term debt. Casinos on average now owe $7 of debt for every dollar they project to earn. By comparison, the next most leveraged industries -- industrials, utilities and consumer cyclical -- are all levered at less than four times earnings, according to investment bank Houlihan Lokey Howard & Zukin." According to a story in the Wall Street Journal, everything the MGM owns is up for sale.  Kerkorian's shares in MGM were worth about $14.7 million in 2007.  At today's share price, they're worth $500 million. 

 

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MGM is said to be preparing for bankruptcy.  Terrible's is in a 'pre-packaged' bankruptcy where it's lenders run the Casino's and Terrible's keeps the slot route.  Station Casinos recently offered to pay its bondholders eight cents on the dollar.  Not a bad deal if you can get it.  Ask your lender how they feel.

 

If we all go bankrupt, we can turn back the clock.