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MGM Resorts Opposes B.B. King's Bankruptcy Plan

Posted By admin || 21-Oct-2011

MGM Resorts Opposes B.B. King's Bankruptcy Plan

In a dispute between bankruptcy debtor B.B. King's restaurant and Mirage, owned by casino operator MGM Resorts International, lawyers for the casino argue that the proposed bankruptcy plan for B.B. King's isn't feasible nor in the best interests of the bankruptcy estate.

"There is no lease for the debtor to assume and the motion is an exercise in futility," the Mirage's filing said. "The debtor is not profitable. To continue in this vein is not a responsible exercise of the debtor's business judgment, and though the debtor's principal may be willing to commit the debtor to such continuing losses, it is certainly not in the best interests of the (bankruptcy) estate."

The mirage has disputed B.B. King's claims that remaining in the leased space has made it possible for them to fund their bankruptcy plan. The Mirage contends that B.B. King's owed them $635,000 prior to bankruptcy and that they have failed to cure the default.  Furthermore, according to the Mirage, B.B. King's has failed to provide assurances that they plan to cure the default which is a requirement if they want to continue operating under the lease.

While under normal circumstances outside of bankruptcy, the Mirage would have the right to evict the debtor, the bankruptcy estate has an interest in keeping B.B. King's in the space if it is in fact beneficial to most the creditors. If the bankruptcy estate will receive the maximum amount of repayment if B.B. King is NOT evicted, then the trustee will do all he can to insure that some type of settlement is reached between the fighting parties.  A hearing on the matter is scheduled for later this month and next month.

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