PartyGaming Plc dismissed a newspaper report on Wednesday that it must negotiate a new loan facility with its banks within 30 days of President Bush approving a bill to crack down on Internet gambling.

The Financial Times reported that the move was prompted by a clause in a $500 million loan agreement allowing its lenders to call in the loan in the event of an alteration in U.S. law that affects PartyGaming's position in the country.

We don't see this as an issue, said a spokesman, adding that the loan was actually a revolving credit facility, which the company can dip into according to its needs.

About $10 million of that has been used, he added.

PartyGaming had net cash of $92.8 million when it reported its interim results at the end of June, compared with debt of $119.5 million a year earlier.

PartyGaming's volatile shares rose by 2 percent in the first 15 minutes of trading on Wednesday, but then shifted into negative territory and were down 2.5 percent at 39-3/4 pence at 0745 GMT.

The firm said on Tuesday it was canceling its interim dividend following a decision to suspend all gaming business with U.S. players in the face of the new legislation.