Morgans Hotel Group Co. (NASDAQ:MHGC) ("MHG") today announced that the forbearance agreements with the lenders which hold the mortgage loans secured by its Hudson and Mondrian Los Angeles hotels have been extended until October 12, 2010. MHGC previously entered into forbearance agreements which effectively extended the maturities of the loans for 60 days until September 12, 2010. This recent extension will allow MHG and the lenders to complete appropriate amendments to further extend the loans.
The loans are comprised of a $217.0 million first mortgage secured by the Hudson and a $120.5 million first mortgage loan secured by the Mondrian Los Angeles. The first mortgage loans were scheduled to mature on July 12, 2010 with options to extend the maturities to October 2011 provided that certain conditions were met.
