Arcadia has agreed to pay the liquidator for BHS, FRP Advisory, £30m in order to avoid a High Court battle.
The action was filed by SHB Realisations, formally BHS, earlier this month at the High Court, but the reason for the case was not known at the time.
The claim was partly related to a £35m floating charge held by Arcadia on 14 April 2015.
A spokesman for the liquidators at FRP Advisory said: “The liquidators of SHB Realisations, formerly BHS, reached an agreement with Arcadia Group in relation to a number of matters, including Arcadia’s floating charge dated 14 April 2015. We can confirm that as part of the agreement, over £30m was released from reserves held in relation to Arcadia’s secured claim into the monies available for BHS unsecured creditors and the floating charge is to be released.”
Arcadia declined to comment.