Bay Restaurant Group has reduced its debt by up to an estimated £150m following a financial restructuring.

The firm, which owns the La Tasca, Ha! Ha! Bar and Grill and Slug and Lettuce chains, came to terms with two European banks – Kaupthing of Iceland and Commerzbank of Germany – on a debt-for-equity deal.

Chief executive Paul Symonds said: "We are delighted to have secured supportive refinancing from our banks which puts the group on a secure financial footing for the future.

"This transaction will enable us to continue to invest and grow our business, incentivise and motivate our management team and staff, and firmly provides the group with the opportunity to outperform in our market. The directors look forward to the future with confidence."

La Tasca, Ha! Ha! and Slug and Lettuce were formerly part of Robert Tchenguiz’s Laurel Pub Company, which then splintered into Bay Restaurant Group and the Town & City Pub Company when the firm was put through a pre-pack administration last year.