Rent-to-own retailer Brighthouse could come under the control of a group of bondholders as soon as the end of this week, as its restructuring process continues.
Private equity owners Vision Capital will be left with a stake of three per cent if proposals can be agreed upon, according to Sky News.
However, the chain's advisers have also been running parallel discussions over a possible takeover deal. City A.M. understands that these talks are still ongoing.
Brighthouse agreed last month to pay out £14.8m to customers after a City watchdog probe found that thousands of people had not been properly assessed for their ability to repay loans to the business.
Meanwhile, the group's bondholders, led by Alteri Investors, have been circling the company for months with plans for a debt for equity swap which would wrest control from Brighthouse's private equity owners. Any proposal put forward would need the agreement of all bondholders.
A spokesperson for Brighthouse declined to comment.