Metro Bank has seen a plan set to ensure its future is approved by shareholders.
A £325 million investment will now be secured for the challenger bank, including from a new controlling shareholder, while a further £600 million worth of debt will be refinanced.
According to Metro, some 93% of shareholders voted to back the rescue deal, which chief executive Daniel Frumkin said marks “a new chapter” for the bank.
“This is testament to their belief and confidence in the future of Metro,” the bank added.
“[It] proves there is a place in retail and business banking for our model of stores in major towns and cities, combined with online and mobile banking and great customer service.”
Billionaire Columbian banker Jaime Gilinski Bacal will become the controlling shareholder in Metro as part of the deal, with his firm Spaldy Investments injecting £102 million.
Bondholders, who have previously also backed the move, will lose 40% of investments under the plan.
Having been set up in 2010 in the wake of the financial crisis, Metro became the UK’s first new bank in over a century, subsequently gaining 2.7 million customers.
However, uncertainty about the challenger bank’s future had grown since reports emerged in October that Metro was looking at ways to shore up finances.
Shares in Metro hit an all-time low in October as a result and have ultimately slipped by almost 70% so far this year.
Though shares recovered some losses on Monday on news of the approved rescue plan, rumours remain over other efforts by Metro to shore up finances.
According to Sky News, Metro is in talks to sell its £3bn mortgage portfolio to Barclays in a further bid to ward off collapse.
Such a deal could be struck by the year-end, reports say, adding Barclays was highlighted as being “among the likely suitors for the mortgage book” during a conference call.
Shares in Metro climbed by 7.6% to 41.90p.