MGM Mirage (MGM) has reached an agreement with most of its lenders to extend the time required to repay its $4.37 billion in debts that would have come due in October 2011. 

Not all lenders agreed to the extension; the casino operator will be forced to repay $1.2 billion to lenders who did not consent.

The debts that were extended will not come due until February 2014.

"This amendment underscores the tremendous confidence our bank group has in our company," said MGM Mirage CEO Jim Murren in a statement. "The transaction provides us with additional long-term financial flexibility and reflects our continued commitment to strengthen our financial position."

MGM does not go without any penalties for the extension. The company will pay a one-percentage-point increase in the interest rate for lenders as an "extension fee." The company must also make a 20% cut in credit exposures to the participating lenders.