Shareholders of troubled bar group SFI have rubber-stamped a restructuring plan laid out by executive chairman Stuart Lawson.
Following a vote at an extraordinary meeting, shareholders will take a 12.5 per cent stake in a new holding company.
The group's banks will take a 75 per cent stake in that company, but in return the operator of Slug & Lettuce will see its debt slashed from more than £160m to £80m
SFI management and staff will have the opportunity to earn the remaining 12.5 per cent of the business through performance.
Mr Lawson, who was parachuted in to rescue the business and replaced Andrew Latham at the helm, has also unveiled athree-year recovery plan.
He said: "I am pleased that shareholders have given the restructuring their resounding support.
"Whilst this new starting point is a challenging one, the business has some well established brands, a well located portfolio and a clear strategy and focus in our recovery plan."
Subject to court sanction, SFI's restructuring will be complete by the end of the month.
The company, which also operates Bar Med and Litten Tree, hit the buffers after rapid expansion resulted in a cash crisis.