Melco reaches Studio City loan amendment accord

Melco Crown Entertainment said its Studio City Co. unit has reached an accord with lenders allowing it to amend the covenants on a $1.4 billion loan.

The amendments, which are in effect as of Wednesday, include changing the Studio City project opening date condition from 400 to 250 tables, consequential adjustments to the financial covenants, and rescheduling the commencement of financial covenant testing, the company said in a release.

Studio City will continue its operations and obtain disbursements from the $1.4 billion Studio City loan, as scheduled, it said.

The $3.2 billion Hollywood-themed Studio City resort opened on Oct. 27th. but Melco had warned that the failure to receive all the tables it had requested would put it in breach of its loan covenants.