TI sold but will MGM go Bankrupt ?

MGM, Riviera, Stratosphere: Just a few of the big names in Las Vegas that are having unprecedented money troubles.

Wednesday was filled with grim news for the gaming sector, including hints of a potential bankruptcy filing for the biggest of all the big players on the Strip. News 3's Steve Crupi is digging deeper into the casino crisis.

For decades, new hotels couldn't be destroyed fast enough to make way for a bigger, brighter future in Las Vegas. But in this dismal economy, the formula for explosive growth isn't working. The numbers are pretty shocking.

If you invested $100.00 in MGM-Mirage stock 17 months ago, today, it's only worth $2.00. Ninety-eight percent of the company's value on Wall Street has disappeared and where it's going could be even scarier.

The company has borrowed billions to build the biggest project ever in Las Vegas. CityCenter is set to open later this year. But the question now is will MGM-Mirage default on its debt payments? The company is talking terms with lenders. If a deal can't be reached, some on Wall Street are using the dreaded "B" word: bankruptcy.

Serious money troubles have hit nearly every company on the Strip. Wednesday, Wachovia Bank announced that Riviera Holdings Corporation is in technical default on a $245 million line of credit.

In addition, the company that owns the Stratosphere is going ahead with layoffs, salary cuts, and are no longer matching the 401(k) dollars put into workers' retirement accounts.

And if all that weren't enough, gaming giant Harrah's Entertainment has had its credit worthiness downgraded another two notches. Moody's Investor Service says the likelihood of financial default with Harrah's is high.

The MGM-Mirage CityCenter project is a joint venture with Dubai World. News 3 learned that efforts to get a bank loan for the billion dollars needed to finish the project have fallen apart.

It won't be enough, but MGM-Mirage is about to get a bundle of cash - $775 million is on its way from the sale of the Treasure Island Hotel - a deal that was approved by the Nevada Gaming Board Wednesday.