04/30/2008 11:00PM

Magna extends $40M loan's due date

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Magna Entertainment Corp., the racetrack company that is struggling to pay down its debt, has reached an agreement with a Canadian bank to extend the maturity date for a $40 million loan until May 23, the company announced on Wednesday night.

The loan was scheduled to mature on April 30. Magna has lost more than $500 million over the past five years and has more than $500 million in debt.

Over the past year, Magna has attempted to sell some of its properties in order to reduce its debt load, but the company has failed to reach any significant deal to unload one or more of its struggling racetracks. Much of the debt that comes due this year is owed to its parent company, MI Developments, whose shareholders are considering a plan to assign the debt to a new limited-liability company. The shareholders are scheduled to vote on the plan at the end of May.