March 17, 2009

MGM Mirage (MGM.N), which earlier this month warned it was in danger of violating debt covenants, will report fourth-quarter results on Tuesday and investors are expecting details on how the casino operator intends to avoid a default.MGM, controlled by billionaire Kirk Kerkorian, will also face questions on financing prospects for its CityCenter project under construction on the Las Vegas Strip, where the company already operates 10 casino resorts.

Industry sources say a solution could involve reworking the multi-tower CityCenter's condo-hotels -- a market that has soured dramatically amid the downward spiral in U.S. housing prices.MGM last year raised $750 million from notes secured by its New York New York resort on which it is paying 15 percent a year in interest. In December, the company agreed to sell its Treasure Island resort on the Strip to real estate mogul Phil Ruffin for $775 million and in February it drew down the remaining $842 million of its revolving credit facility.