AIB is among a group of banks that have renegotiated lending terms with a US casino corporation in danger of violating its credit agreements later this year.

Ameristar Casinos, which operates eight casinos in the US, has renegotiated its debt by agreeing to increase the interest rate for all revolving loans and term loans under the credit facility by 1.25% a year effective from last week.

The company has outstanding debts of $1.67bn. It had been in danger of violating the debt to cash ratios specified in the terms of its credit agreements. The new agreement increases Ameristar's maximum permitted senior leverage ratio until the relevant credit facilities mature in November 2012. In order to secure the new terms, Ameristar not only agreed to the rate increase but also paid lenders $9m dollars in one-off upfront fees.

Ameristar is the leading casino operator in seven US cities with casinos in Chicago, Kansas City, St Louis, Denver, Vicksburg Mississippi, Omaha Nebraska, and Jackpot Nevada.