New owner of Treasure island Las Vegas hotel was approved last week. Phil Ruffin, previous owner of New Frontier, was ok’d by the Nevada Gaming Commission to become the new operator from MGM Mirage. They are the same company building the massive Project CityCenter Resort located on the Las Vegas Strip.
Ruffin changed his initial payment to MGM Mirage by adding $100 million to the $500 million initially agreed. This financial move is to decrease his total payment of $775 million by a $20 million discount.
The final financing on $175 million will have the discount if Ruffin can produce financing by April 30, 2009. He was officially operator of the hotel casino on Friday, March 20 at 3 a.m.
Ruffin has been moving on the fast track to close the commercial real estate deal. When the purchased was announced in December, MGM Mirage wanted the deal to close by June 30, 2009. Ruffin expressed his desire of a end of month close at the Gaming Control Board meeting earlier this month. MGM Mirage could really used the quicker infusion of capital sooner for its balance sheet.
Last week MGM Mirage received a delay of two months before violating loan terms. Bankruptcy might be more difficult from being delayed due to the $13.5 billion in debt.