MGM Resorts International, the biggest casino enterprise on the Las Vegas strip has invested heavily into its subsidiary MGM China Holdings Ltd to expand its operations in Macau, the biggest gambling hub in the world. The China subsidiary had borrowed $3 billion to set up its second multi-billion dollar resort on the Cotai strip and is expected to launch operations towards the end of 2016.

When MGM China decided to borrow $3 billion and set up its new casino on the Cotai strip, Macau’s gambling industry was booming and MGM was looking to scale its operations and increase its revenue. The company went all in and borrowed heavily before the Macau casino bubble burst due to the anti-corruption crackdown launched by Beijing and slowed growth in the mainland Chinese economy.

Macau’s top casino operators including Melco Crown Entertainment Ltd and MGM China have suffered from the collapse of Macau’s gambling industry and their profit margins have been severely impacted. As a result MGM China has found it hard to pay back interest rates on its $3 billion loan and has requested its list of creditors to be considerate and rework the terms and conditions of its loan repayment.

Individuals who have been part of these negotiations between MGM China and its creditors have stated that more than 65 percent of creditors have agreed to amend the loan repayment agreement as they have understood the market situation in Macau and are willing to work with MGM China and come up with a new loan repayment structure. These individuals who preferred to be anonymous stated that the remaining creditors are yet to confirm if they will accept MGM China’s new proposal.

MGM China is not the first casino enterprise to receive approval for new loan repayment conditions as back in October 2015 Melco Crown Entertainment Ltd also managed to get its creditors to work out new repayment conditions for its billion dollar Studio City loan.

Macau’s gambling revenues dropped by thirty four percent during 2015 and a Forbes report predicts that MGM Macau’s revenues has dropped from $3.5 billion in 2014 to $2.3 billion in 2015. The new MGM casino on the Cotai strip will have a total of 500 gaming tables, 2,500 slot machines and 1,600 hotel rooms which will help MGM double its operations in Macau.

Forbes predicts that MGM China will be able to scale its operations in the coming years and be able to bring in over $4 billion in revenue by the end of 2019. The fact that MGM China’s creditors are willing to be flexible with their loan repayment conditions suggests that they are also confident that MGM China will be able to increase its revenues from the new Cotai casino.