{"id":15214,"date":"2014-12-16T12:38:06","date_gmt":"2014-12-16T20:38:06","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=15214"},"modified":"2014-12-16T14:53:58","modified_gmt":"2014-12-16T22:53:58","slug":"much-ado-about-harmon","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/much-ado-about-harmon\/","title":{"rendered":"Much ado about Harmon"},"content":{"rendered":"

After endless months of maneuvering and legal posturing, MGM Resorts International<\/strong> and \u00a0Tutor Perini<\/strong>\u00a0arrived at\u00a0a settlement on what was to have been the opening day of an <\/a>\"Harmonini\"<\/a>epic trial<\/a>. (That’s seven weeks of jury selection down the drain.) The case revolved around the defectively constructed Harmon<\/strong> hotel and came down to where the finger for the fiasco should be pointed. Although the settlement was nominally\u00a0confidential, Deutsche Bank<\/strong> analyst Carlo Santarelli<\/strong> got the nitty-gritty via the SEC<\/strong>. CityCenter<\/strong> will receive $110 million from contractors, insurers, MGM and sundry third parties. In addition to paying CityCenter $20 million, MGM lays $153 million worth of bread on Perini “to resolve non-Harmon-related liens.”<\/p>\n

In a surrealistic twist, $88 million comes right back to MGM, since it owns half of CityCenter (even if Perini comes out looking like the winner<\/a>). “Thus, on a net aggregate basis, the total cash impact to MGM is ~$13 mm ($101 mm out less $88 mm in),” writes Santarelli. That’s not too bad of a hit when all is said and done. The Aria<\/strong> marquee cost less than that.<\/p>\n

“Because of the complexity of this case, it was going to be impossible to try it,” said Michael Infuso<\/strong>, lawyer for lone holdout Show Canada<\/strong>. His client will go forward with a non-jury trial later this winter.<\/p>\n

* MGM’s mega-nightclub partner Hakkasan<\/strong> is doing a little Christmas shopping<\/a>. Its wishlist is Morgans Hotel Group<\/strong>‘s 90% stake in Light Group<\/strong>, which would net Hakkasan<\/strong> several additional Vegas nightclubs, including the in-progress Omnia<\/strong> at Caesars Palace<\/strong>. (Judging by the blocky-looking construction, it’s in danger of being spectacularly fugly.) This makes sense, unlike Morgans’ foray into nightlife. Former owner and operator — with disastrous results — of the Hard Rock Hotel & Casino<\/strong>, Morgans couldn’t hack it in gaming, so what made them think they were suddenly nightlife barons? Hakkasan owner\u00a0Sheikh Mansour bin Zayed Al Nahyan<\/strong>‘s target of preference is said to have been Tao Group<\/strong>, but those talks went nowhere. As for Morgans, it could take a bit of a bath on the deal, selling for $40 million assets that it bought in 2011 for $46.5 million, but that’s just in Morgans’ karma, isn’t it?<\/p>\n

Update<\/strong>: Within the last hour Hakkasan and Morgans announced that the latter was selling a 90% interest in The Light Group to Hakkasan for $36 million, in return for a few minor concessions involving restaurants at Mandalay Bay<\/strong>. The two parties already enjoy a relationship at West Hollywood<\/strong>‘s Mondrian<\/strong> hotel.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

After endless months of maneuvering and legal posturing, MGM Resorts International and \u00a0Tutor Perini\u00a0arrived at\u00a0a settlement on what was to have been the opening day of an epic trial. (That’s seven weeks of jury selection down the drain.) The case … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[56,28,4,149,7,22,11,102,9,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15214"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=15214"}],"version-history":[{"count":3,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15214\/revisions"}],"predecessor-version":[{"id":15224,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/15214\/revisions\/15224"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=15214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=15214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=15214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}