Carpetright PLC’s (LON:CPR) biggest shareholder has bought £41mln worth of debt from the troubled retailer’s lenders.
Natwest and Allied Irish Banks had agreed to make up to £40.7mln available to Carpetright in the form of a revolving credit facility.
READ: Carpetright picks itself up off the floor
But hedge fund Meditor, which owns almost a third of Carpetright’s shares, has now purchased that facility.
A £6.5mln overdraft will effectively be taken on by Meditor as well.
Meditor said it would now work with bosses to provide a “more stable and longer-term funding platform”.
Carpetright underwent an emergency restructure last year, closing shops and asking for rent cuts in a bid to keep it afloat.
There are signs that the turnaround plans are having the desired effect. A trading update in June showed that losses narrowed in the latest financial year, while sales have returned to growth in the opening few months of the new year.