Experts say that this might be the year that MGM Mirage has to file for Chapter 11 bankruptcy protection.
Las Vegas has been at the center of much of the news concerning the recent recession, and one of the major players on the strip is continuing to struggle financially. The MGM Mirage has been surrounded by bankruptcy talks for years now, but after a dismissal fourth quarter some experts are saying that 2010 might finally be the year that the company has to file for bankruptcy protection.
During the last quarter of 2009, the company lost $433.9 million. That's less than the $1.15 billion that the company lost in the same period a year ago, but that downward trend can't continue forever. The bad news is that experts don't see the Las Vegas Strip rebounding anytime soon. The company has significant exposure to the strip, so if the strip continues to struggle the company will too.
The company has been trying to fix its problems for a few years now, but things just aren't getting that much better. The changes just seem to put off the inevitable, but the company keeps on trying different fixes. Some of things the company might try to do moving forward are to conduct debt exchanges, sell assets, extend maturities, and modify amortization schedules.
Anyway, the specifics of MGM Mirage's situation would have to be known, but it appears that the company is just putting off an inevitable bankruptcy filing. In situations where individuals or companies continue putting off bankruptcy by making superficial moves, they a lot of times end up hurting themselves more than help themselves. The reality is that bankruptcy is sometimes the best move for entities, because they get a clean slate and they get to continue moving forward.
Without knowing all of the details, a Chapter 11 bankruptcy could be good for the company, because it would allow the company to keep operating while wiping out and eliminating debts. In many personal bankruptcy situations people end up hurting themselves by trying to fight off bankruptcy. They end up losing a lot more money than they would have otherwise.
Well, if you are struggling financially it doesn't hurt to call. You can speak with an attorney to see if bankruptcy would be right for you. A good attorney will evaluate your situation, and they will give an honest opinion of what would help you the most. Contact a bankruptcy attorney today to find out more.