New Look is expected this week to confirm that it has finalised a restructuring of its debts, according to reports.
Drapers reported last month that the young fashion retailer was close to agreement with senior lenders to extend the maturity of debt and a deal, and according to The Telegraph, this will be confirmed later this week.
New Look, which has net debt of around £1bn, has been in discussions with lenders for some time. Repayment timings are expected to be staggered, resulting in two years breathing space on bank debts until 2015.
New Look’s debt also includes payment-kind-notes, a loan where interest rolls up and is paid in a lump sum at the end of the term. This is now thought to have swelled to more than £700m. It’s thought that this will be addressed separately.