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MGM Mirage ends "going concern" doubt, shares rise

LOS ANGELES
Tue Jun 23, 2009 6:37pm EDT

Stocks

   

LOS ANGELES (Reuters) - Casino operator MGM Mirage (MGM.N), which recently raised $2.6 billion from the sale of debt and equity, said on Tuesday there is no longer a substantial doubt about its ability to continue as a "going concern."

Shares of the company rose more than 8 percent after the regulatory filing.

Las Vegas-based MGM had warned in March that its auditors would include the language in its annual report.

The company, like rivals Las Vegas Sands Corp (LVS.N) and Harrah's Entertainment Inc HAMLEH.UL, has struggled with a large debt burden and declining cash flows as gamblers cut back on their spending amid the global economic downturn.

Shares of MGM, which closed at $5.84 in regular trading on the New York Stock Exchange, rose 8.4 percent to $6.33 in after-hours trading.

(Reporting by Deena Beasley; Editing by Tim Dobbyn)


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