Embattled casino operator MGM Mirage (MGM) is involved in discussions with Colony Capital LLC about possibly receiving a secured loan from the private-equity firm, a person familiar with the matter said Tuesday.

Colony is in talks about leading such an investment with other investors that could include using some of MGM Mirage's casinos as collateral, the source said, adding that a deal isn't set in concrete and may yet fail to materialize.

A loan could go a long way in helping MGM Mirage refinance its hefty debt load as the Las Vegas-based company struggles to remain in compliance with its debt covenants.

A MGM Mirage spokesperson wasn't immediately available to comment.

The company reportedly hired Morgan Stanley recently to handle the potential sales of MGM Grand Detroit and the Beau Rivage casino in Biloxi, Miss., amid intense pressure to raise cash to meet looming obligations on its $13.5 billion in debt.

MGM Mirage is also trying to salvage City Center, a $8.6 billion project in Las Vegas jointly owned by MGM Mirage and Dubai World that still needs billions of dollars in funding.

-By A.D. Pruitt, Dow Jones Newswires; 201-938-2269; angela.pruitt@dowjones.com

(Tamara Audi contributed to this report.)