MGM will be allowed to skip three interest payments due on its $3.7 billion debt load.
Lion confirmed the agreement with its lenders in a statement issued on Thursday afternoon.
“Under the terms of the agreement, MGM’s lender group has agreed not to enforce its rights or remedies arising as a result of the company’s request to not currently pay interest due on Sept. 30, Oct. 31 and Nov. 30, 2009,” the statement said.
The agreement expires on Dec. 15, but gives MGM short-term breather as it continues to figure out how to move forward.
Company recently replaced CEO Harry Sloan with restructuring specialist Stephen Cooper (Daily Variety, Aug. 19).
Lion’s only theatrical release of the year, “Fame,” bowed on Sept. 25 and has grossed $11.5 million to date.