MGM Mirage is not in discussions at the moment to sell any of its properties, though it remains open to offers, according to a person familiar with the situation.
The source refutes a Wall Street Journal report that the gaming behemoth is in discussions to raise much-needed cash by selling its Detroit property and the Bellagio. The company had no comment.
As MGM Mirage faces nearly $1.3 billion in debt due this year, it also needs to raise another $1.2 billion to complete its CityCenter project, a $9 billion joint venture with Dubai World in the heart of the Las Vegas strip.
The source tells CNBC that the company is seeking the simplest solution to buy time—a waiver of the terms of default. There are two near-term issues which need to be resolved or modified: making payments for bonds due this year, and maintaining the cash flow-to-debt ratio required by the company's $7 billion senior credit line.
If the terms for either, or both, cannot be modified through some sort of waiver, CNBC has learned that MGM Mirage will move on to more complex and difficult possibilities: selling assets, finding new debt and/or equity partners, or restructuring. It has already been trying to find new partners, but to no avail. Earlier talks with Deutsche Bank to put up some money in exchange for a stake in CityCenter have ended.
The company's cash flow will ease a bit later this week when it closes on the $775 million sale of Treasure Island, netting MGM Mirage $500 million in cash.