JJB Sports has completed its refinancing and ended its standstill agreement with its banks.
In a statement, JJB Sports said it can draw on its new £50m facility arranged by Bank of Scotland and Barclays Bank now that its company voluntary arrangement (CVA) is effective.
It has now ended the standstill agreements with its lenders which had been in place since December and which bought JJB management time to put a plan in place to turn around the struggling sports chain.
Bank of Scotland has given JJB a £25m revolving working capital facility which ends on September 30, 2010. It has issued the bank a £11.3m warrant to subscribe for shares in the company as part of the terms.
Barclays has provided a £25m short term loan which is repayable on August 31, 2009. It will be repaid with some of the money received from the sale of JJB’s fitness clubs to JJB founder Dave Whelan.
JJB executive chairman Sir David Jones said: “We are extremely pleased to have moved to the new financing arrangements with our lenders today, and to have terminated the standstill arrangements, under which we have been operating since December 2008.
He added: “The successful implementation of our CVA last week and the move to our new financing arrangements today are major milestones in securing JJB’s longer term future”.