UPDATE 1-U.S. newspaper publisher Morris gets time on debt

* Morris $9.7 mln interest overdue since February

* Morris does not have to sell assets to pay debt

NEW YORK, April 7 (Reuters) - U.S. newspaper publisher Morris Publishing Group LLC received a 17-day extension to make an interest payment on its debt, it said on Tuesday.

The publisher of daily newspapers including The Augusta Chronicle in Georgia and the Juneau Empire in Alaska said it has until April 24 to make a $9.7 million interest payment on its senior subordinated notes.

The interest payment on the debt was due on Feb. 1. Morris, which is privately held, has received several extensions so it can work out a payment structure with its lenders.

Morris lenders also agreed to scrap a requirement that Morris sell off one or more properties by the end of May to help pay its debt.

Craig Mitchell, senior vice president for finance at Morris Communications, the parent company of the publishing group, did not return a telephone call seeking comment.

Newspaper publishers including Morris have been suffering from a dramatic decline in advertising revenue that is putting the survival of some of them into doubt.

Some publishers have tried to sell papers, but have experienced little success. The New York Times said it would sell a paper in Alabama, and the Copley Press found a private-equity company to buy the San Diego Union-Tribune.

Other attempts by companies such as Hearst Corp, News Corp (NWSA.O), EW Scripps Co (SSP.N) and Landmark to sell U.S. newspapers have failed. (Reporting by Robert MacMillan; Editing by Tim Dobbyn)