Carpetright said on Tuesday that Meditor has agreed to purchase its £40.7 million revolving credit facility directly from the company’s current lending banks.
Shares in Carpetright were up almost 10% following the announcement.
Meditor is a substantial shareholder of Carpetright, owning just under 30% of the carpet retailer.
The £40.7 million facility was recently reduced after the sales of two Amsterdam properties.
“In connection with the arrangements Meditor did not seek any assurances from the Company, did not propose board representation and did not request structural changes in the business. Meditor has confirmed it now intends to engage with the Company with a view to providing a more stable and longer-term funding platform,” Carpetright said in a company statement.
In June, Carpetright posted a narrower loss in its full year results, returning to like-for-like sales growth in its new financial year.
Just over a year ago, its shareholders supported a Company Voluntary Arrangement (CVA) restructuring plan which closed 80 underperforming stores.
Over the past year, several retailers across the UK have struggled for survival amid the challenging trading environment to hit the retail sector.
The carpet seller lies among these retailers, issuing its fourth profit warning in five months last year.
Shares in Carpetright plc (LON:CPR) were trading at +9.31% as of 10:08 BST Tuesday.
