Bally's (BALY) is in a dispute with its lenders over proposed changes to its roughly $1.9 billion term loan, Bloomberg News reported Wednesday, citing people with knowledge of the matter.

Bally's missed last week's deadline to secure support from the lenders for its proposed changes as they remained concerned about collateral value and repayment plans, the report said.

Bally's proposed to use its yet-to-be-built Chicago casino as collateral and sell its Rhode Island property, which currently supports its debt, for $735 million and then lease it back, Bloomberg said.

Bally's has offered to raise the loan's interest rate and use $500 million from the Rhode Island sale to reduce secured debt, but lenders are demanding more clarity on cash use and debt repayment, the report added.

Bally's and Akin Gump Strauss Hauer & Feld, which is working with an ad hoc group of lenders, didn't immediately reply to MT Newswires' requests for comments.

The company's shares rose 4.6% in recent trading Wednesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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