Bloomberg has reported that the MGM Mirage will write down the value of Mandalay Resort Group by $1.2 billion.
In a regulatory filing posted on Jan. 9, the company said that the impairment charge resulted from “lower market valuation multiples for gaming assets, higher discount rates resulting from turmoil in the credit and equity markets and current cash flow forecasts for the affected resorts.”
Last week, reports surfaced that MGM Mirage’s new chief executive, James J. Murren, plans to “dramatically” cut the company’s debt by selling off more of its casinos. In mid-December, MGM unloaded its Treasure Island Hotel & Casino to a Wichita, Kan., businessman for $775 million.