Casino operator MGM Mirage (MGM) announced Friday an agreement to put its 50% stake in Atlantic City's Borgata Hotel Casino & Spa into a divestiture trust.
The deal comes after the state of New Jersey's Division of Gaming Enforcement deemed MGM’s Macau-based partner “unsuitable.”
The Macau partner, businesswoman Pansy Ho, was called "unsuitable" by regulators in May, at which time MGM Mirage said it was seeking settlement. Though it has not been disclosed why Ho is seen as an unfit partner, there have been reports that her father Stanley Ho is connected to organized crime.
Under the terms of the agreement, MGM Mirage would stand as the sole beneficiary of the trust, and it would have 18 months to sell its stake in Borgata. The agreement and the sale must first be approved by regulators. Proceeds from the sale of the Borgata would aid MGM in paying down its debts.