"The overall renovating and buliding project is costing $300 million, and is expected to be complete by the end of March."
Originally it was announced the expansion program would cost $275 millon and would be completed by the end of 2007.
Although the expanded gambling floor (25% larger) was opened to the public back in June revenues reported for October were at pre-opening lows; and just 1% greater than revenues reported in October 2006. In fact, despite the June opening of the expanded gaming floor, revenues as reported have fallen for the last three consecutive months.
Moody's and Standard & Poor's were forced to drop their credit ratings of MotorCity Casino's parent company CCM Merger, Inc. in 2006 and have given the holding company a negative credit rating.
Moody's reports that investors -- those who've loaned Marian Ilitch the $1.1 billion she needed to acquire MotorCity Casino from MGM Mirage/Mandalay Resort Group, to complete the expansion and to finance the financing package -- have reason to be concerned.
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