Street.com surveys readers: Will MGM Mirage file bankruptcy
A financial Web site is asking readers if they think MGM Mirage will file for bankruptcy this year.
The Street.com, which is affiliated with bombastic CNBC stock analyst Jim Cramer, posted the survey Monday morning following last week’s fourth-quarter earnings report by MGM Mirage. The Strip casino giant lost $433.9 million in the quarter that ended Dec. 31, or 98 cents a share, compared with a loss of $1.15 billion, or $4.15 a share, in the same quarter a year ago.
“Can MGM continue to avoid bankruptcy or is a Chapter 11 filing pending?” The Street.com asked.
Alex Calderone, who provides turnaround and crisis management services for the gaming sector at Conway MacKenzie, told the Web Site, "MGM won’t work its way through this situation by just cutting costs and earnings power, regardless of a rebound on the Strip."
Both Calderone and Sterne Agee gaming analyst David Bain said bankruptcy could be an alternative for MGM Mirage, but that it may be premature to discuss. The company has the backing of its bankers and several valuable casino assets.
As of 11 a.m. Monday, the non-scientific poll had collected more than 800 responses with about 85.5 percent saying MGM Mirage would not file for bankruptcy.