LONDON -(Dow Jones)- Troubled U.K. retailer Blacks Leisure Group PLC (BSLA.LN) Tuesday said its bank has approved the terms of its restructuring plan, which will see it exit 101 stores.
In a statement, Blacks Leisure said company voluntary arrangements, or CVAs, are being proposed for Blacks and its subsidiary The Outdoor Group Limited.
The CVA proposal, if approved, will see landlords of 101 stores which are either already closed or set to close share in a GBP7.25 million compensation fund for claims.
Blacks is also seeking to vary the terms of around 291 store leases to allow for monthly rental payments for 18 months.
The firm added that it will receive GBP42.5 million of new financing from Bank of Scotland, a subsidiary of Lloyds Banking Group (LLOY.LN), if the CVA proposal is approved by creditors and shareholders.
The bank has also agreed to extend an existing standstill agreement to Dec. 23.
Blacks Leisure Chief Executive Neil Gillis said the turnaround plan and new financing would “provide a realistic opportunity to ensure the survival of the core outdoor business.”
Company Web site: www.blacksleisure.co.uk
-By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; hannah.benjamin@dowjones.com