Lenders extend deadline for MGM payments

Interest payments on $3.7 bil debt must be made by Jan. 31

MGM has gotten another reprieve from its lenders, who have extended the deadline by which it must resume making interest payments on its $3.7 billion debt to Jan. 31.

Early in October, the lender group struck a similar agreement, under which MGM was allowed to skip interest payments due at the end of September, October and November. Its next interest payment would have been due on Dec. 15.

The new extension gives the studio some extra time to pursue other alternatives such as a sale.

In a statement, the beleagured studio said Friday, "The lenders took this action in support of the company's ongoing efforts to develop and evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group for the process it is undertaking. MGM also said today it is beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the company."
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