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Carpetright PLC’s (LON:CPR) biggest shareholder has bought £41mln worth of debt from the troubled retailer’s lenders.

Natwest and Allied Irish Banks had agreed to make up to £40.7mln available to Carpetright in the form of a revolving credit facility.

READ: Carpetright picks itself up off the floor

But hedge fund Meditor, which owns almost a third of Carpetright’s shares, has now purchased that facility.

A £6.5mln overdraft will continue to be provided by the banks.

Meditor said it would now work with bosses to provide a “more stable and longer-term funding platform”.

Carpetright underwent an emergency restructure last year, closing shops and asking for rent cuts in a bid to keep it afloat.

There are signs that the turnaround plans are having the desired effect. A trading update in June showed that losses narrowed in the latest financial year, while sales have returned to growth in the opening few months of the new year.