MGM Mirage, the casino operator controlled by billionaire Kirk Kerkorian, won a two-month reprieve from banks to come up with a debt restructure plan as auditors questioned the company’s ability to stay in business.

Banks granted the Las Vegas-based company covenant waivers on a $7 billion bank-loan facility until May 15, MGM Mirage said yesterday in a regulatory filing. The company also reported a $1.15 billion fourth-quarter loss after writing down properties because of shrinking gambling revenue.

The auditor’s comments increase the likelihood MGM Mirage, with $13.5 billion in debt, will file for bankruptcy. The bank waiver bars MGM Mirage from prepaying or buying back long-term debt or selling assets without lender permission, executives said. The company repaid $300 million of the revolving loan and accepted a 1 percentage point increase in the interest rate.

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