Las Vegas crapping out, MGM in dire straits

The glitter of the Strip in Las Vegas is shining a little dimmer today, as the recession has raked a big stack of chips off the gaming table and left some key players struggling to pay up. Kirk Kerkorian's MGM Mirage (MGM) in particular is in danger of being taken for a long ride into the desert.

The Wall Street Journal (subscription required) reports that talks with a potential angel, Colony Capital LLC, which could help cover the company's massive debt, have collapsed. MGM, owner of the Bellagio, Mirage, Mandalay Bay and other Las Vegas casinos, as well as properties in Detroit, Mississippi, and half of the MGM Grand Macau in China, faces $13.5 billion of debt as well as payments due on its 50 percent share of the CityCenter development. It has tapped out its senior credit facility, and a waiver that it received delaying required repayments is due to expire on May 15. It reportedly is ready to sell off MGM Grand Detroit and a Mississippi casino to raise some cash.