Monday, March 30, 2009

CEO Murren Tells MGM Employees: "Trust Me."

In a letter sent to MGM Mirage (MGM-$2.85) employees, CEO James Murren assured the staff that the management of the casino operator remained committed to avoiding insolvency and completing the troubled $8 billion CityCenter Las Vegas project:

“There is little doubt that you will continue to see and hear stories from others about what the future holds for us. I ask that you please reserve judgment on what you hear while your leadership does the vital work necessary to protect our Company’s and your interests. You can be assured that I will continue to update you as often as I can with accurate information.”

This is the same Jim Murren, who as Chief Financial Officer from January 1998 to August 2007, oversaw the more than doubling of long-term debt on the balance sheet to $12.4 billion in just four years. As MGM teeters on the verge of bankruptcy, I would less-than assured that he had my best interests in mind.

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.” ~ German Philosopher Friedrich Nietzsche (1844 – 1900)

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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