The amendment provides that the mandated sale of the trust property be increased by 18 months to 48 months. During the first 36 months (or until March 24, 2013), MGM Resorts has the right to direct the trustee to sell the property. If a sale is not closed, the trustee will be responsible for selling MGM’s interest in the Borgata during the following 12-month period. All other material terms of the settlement agreement remain unchanged.
The Borgata opened in July, 2003 as a joint venture between Boyd and MGM, and is currently one of the most popular and top-grossing Atlantic City casinos. In 2010, MGM announced it would sell its stake in the Borgata and and leave New Jersey after state regulators expressed concern and discomfort regarding the company’s relation with Asian entrepreneur Pansy Ho. MGM and Ho own a joint venture in the Chinese enclave of Macau. In March 12, 2010, MGM reached an agreement with the gaming enforcement division to sell its half interest in the Borgata Hotel casino.
Under the agreement, MGM remains the sole economic beneficiary of the trust. Boyd Gaming Corporation, which owns owns the other 50% of the joint venture and operates the hotel-casino, will not be affected by the settlement. Now, the state’s Casino Control Commission is expected to hold a hearing on August 8, 2011, to analyze the proposed amendment.