HMV given more time to recover by banks

HMV and its banks have struck an agreement that could halve its debts, after the company reached a new deal with suppliers.

The struggling music and film retailer said it was being given a "significantly enhanced" position form which it can move to stabilise the business.

The new deal with suppliers gives them 2.5 per cent of the shares in HMV and should cut debt by 50 per cent within three years.

The company said this will have a "materially positive impact" on the group's profitability and cash flow.