Monday, April 20, 2009 | 4:28 p.m.
Investor Carl Icahn is disputing suggestions he plans to do battle with Kirk Kerkorian for control of MGM Mirage.
"I have absolutely no quarrel with Kirk Kerkorian. I like him. I respect him. I have been his friend for years,'' Icahn told CNBC during an interview Friday.
The Wall Street Journal has reported Icahn and private equity company Oaktree Capital Management have amassed hundreds of millions of dollars in MGM Mirage bonds and have recommended the company seek bankruptcy protection to resolve problems with its balance sheet.
The Las Vegas company, with $14 billion in debt, is weighing several financial options as the recession has reduced cash flow, hurting its ability to make debt payments at the same time it is trying to finalize financing for the $8.7 billion CityCenter project on the Las Vegas Strip. Options most often mentioned are asset sales, an equity infusion, a debt exchange or an exchange of debt for assets.
Icahn, in the interview, didn't directly address whether he's pushing for an immediate bankruptcy and said there are pluses and minuses to bankruptcy filings.
"Whether they need to be restructured or not remains to be seen,'' said Icahn, who would not comment on what MGM Mirage debt he may have acquired.
If there is a restructuring, he said Kerkorian, the majority shareholder, should be involved and bless such a course of action.
The Journal, in the meantime, reported Friday that in the event of a restructuring, Icahn and others may swap debt for equity and may pump additional capital into the company.
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