(BSLA.L) Blacks Leisure Group PLC Buy/Sell

LONDON, Nov 3 (Reuters) - British outdoor goods company Blacks Leisure said on Tuesday it had finalised the terms of a restructuring plan and secured the support of its bank to help keep the firm in business.
The plan will see a company voluntary arrangement (CVA), an increasingly popular insolvency process, proposed for Blacks Leisure and its subsidiary, The Outdoor Group Limited.
Shares in Blacks, which have lost 38 percent of their value over the last three months, were up 1.7 percent at 30 pence at 0832 GMT, valuing the business at 12.8 million pounds ($20.93 million).
Last week the firm, which runs the Blacks Outdoor and Millets chains, reported losses more than doubled in its first half.
The CVA will seek to free Blacks from the claims of 101 landlords of stores which are closed or in the process of closing, and compromise the claims of a further nine landlords.
The firm has also proposed to vary the terms of 291 store leases to allow monthly rent payments for 18 months.
A compensation fund of 7.25 million pounds is being made available to landlords.
Blacks also said its banker Lloyds Banking Group had agreed to extend to Dec. 23 an existing standstill deal and has made new facilities of 42.5 million pounds available to the retailer on condition the CVA is approved by creditors and shareholders.
Subject to shareholder approval Blacks has agreed to issue warrants to Lloyds entitling the bank to buy new shares in the retailer representing 5 percent of its share capital at an exercise price of 1 pence a share.

"The restructuring plan announced today and the new banking facility supporting it provide a realistic opportunity to ensure the survival of the core outdoor business which has the potential to become a strong successful retailer," said Chief Executive Neil Gillis.

($1=.6115 Pound)

(Reporting by James Davey; Editing by Hans Peters) Keywords: BLACKS LEISURE/ (james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)

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