Las Vegas hotel and casino operator MGM Mirage recently informed that it has agreed to sell the Treasure Island Hotel and Casino to Ruffin Acquisition LLC to help the company to boost its liquidity. MGM Mirage, which acquired the Treasure Island as part of the 2000 combination between MGM Grand and Mirage Resorts, expressed that its property will be sold for $775 million, including $275 million in secured notes issued by Ruffin Acquisition and secured by Treasure Island's assets. Ruffin Acquisition LLC, former owner of the New Frontier hotel-casino, will pay $500 million in cash and issue $275 million in secured notes payable within two years of closing. That is slated to take place by mid 2009 and MGM Mirage expects to report a large gain on the sale.

"This transaction creates value to our stakeholders through significantly increased liquidity and enhanced financial flexibility" said James Murren, chairman and chief executive of MGM Mirage.

MGM and other hotel operators in Las Vegas have been seriously affected by the economic recession, casino gambling revenue on the Strip declined for the 10th straight month in October as visitors considerably reduced their travel spending and airlines cut the number of flights to the Las Vegas due the financial downturn. MGM Mirage has been under a lot of pressure to secure the financing needed to complete the CityCenter. The company, which also owns and operates the Bellagio, Mandalay Bay Resort and Casino, MGM Grand and Circus Circus hotel in Las Vegas, has recently delayed the development work for its MGM Grand project in Atlantic City as well as a Las Vegas Strip joint venture with Kerzner International and Istithmar. MGM Grand has also been affected overseas by new visa restrictions in China, which are damaging its investments in Macau.

Phil Ruffin, who got over$1.24 billion from his 2007 sale of the New Frontier Hotel and Casino in Las Vegas, said that he will be taking over the Treasure Island operation during the first quarter 2009 after he gets his Nevada gaming license, which he lost after selling the Frontier.

“I’m a serial entrepreneur. I can’t help it” Ruffin said on an interview giving this Monday.