Troubled UK carpetmaker Victoria Plc secured enough bondholder support for a consensual debt restructuring after HSBC Holdings Plc backed the plan at the last minute, averting a costlier, more time-consuming court process.

The consensual restructuring allows the company to reorganize its obligations without the uncertainty and expense of formal insolvency proceedings. HSBC's eleventh-hour endorsement proved pivotal, tipping the scales in favor of the out-of-court agreement.

Analysts noted that the deal preserves value for stakeholders while giving Victoria Plc operational breathing room. The manufacturer, which has faced margin pressure from raw material costs and weak European demand, can now focus on its turnaround strategy.

The agreement marks a rare positive development for the UK flooring sector, which has seen several peers pursue formal restructurings in recent quarters.