Carpetright plc (LON:CPR) says the transfer of around £41mln of its debts to major shareholder Meditor has been completed.
The troubled flooring retailer said the transfer of the revolving credit facility to Meditor from NatWest and Allied Irish Banks had occurred on 3 September, and as such the hedge fund had become a lender of record.
READ: Carpetright’s biggest shareholder buys £41mln of retailer’s debt
Carpetright added that Meditor had agreed in principle to postpone the due date of certain repayments until either the second business day following the grant of independent shareholder approval or 21 October, whichever fell earlier.
The firm said that a general meeting for independent shareholder approval of the debt transfer in October.
In the meantime, Carpetright said it was “comfortable” with its financial position and would have “sufficient time” to seek shareholder approval.
Carpetright announced the debt transfer deal in late August after undergoing an emergency restructuring last year to save itself from collapse.
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.
Analysts at broker Shore Capital, which rates Carpetright at 'hold' with a target price of 12p, said the agreement would serve as “another staging post” in the company’s restructuring as it looked for a “more stable” funding platform.
In late-morning trading on Monday, Carpetright shares were 1.7% lower at 11.3p.
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