After negotiating with lenders, Prime Retail Inc., one of the nation's largest outlet shopping center owners, has received a costly two-month extension on loan payments it had to make by Nov. 1.

The Baltimore real estate investment trust was supposed to make a $16.5 million principal payment by Nov. 1.

With bankruptcy looming, Prime faces stiffer terms on the balance on the $90 million three-year loan it took out in December 2000 to relieve debt and help its cash flow. The loan's outstanding balance is $31.1 million.

Beginning Jan. 1, Prime's monthly principal amortization payment nearly triples, from $800,000 to $2.33 million, the company said. The loan's interest rate will increase from a floating rate of at least 14.75 percent to a fixed rate of 19.75 percent.

Under the new terms, Prime has to pay the lenders - FRIT PRT Lending LLC, an affiliate of Fortress Investment Fund LLC, and Greenwich Capital Financial Products LLC - at least $12 million by Dec. 31, according to a company statement issued Friday.

As part of the loan amendment, Prime also must pay a fee totaling 2 percent of the loan's principal balance, or $622,000, by the end of the year.

Prime officials were not available for comment, spokesman Steven A. Sless said yesterday.

Prime, which owns and manages 40 outlet centers, including three in Maryland, said in August that there is "substantial doubt" that it could stay in business. To make loan payments, the company has had to sell several properties in its portfolio. It has an outlet center in Puerto Rico for sale that could bring in as much as $15 million.

The company has been working with financial advisers Houlihan Lokey Howard & Zukin Capital since August to look into restructuring, financing and other strategies to strengthen its balance sheet.

Shares of Prime, which trade on the over-the-counter market, closed unchanged at 9 cents.