Investcorp has delivered a major vote of confidence in Polestars future by ploughing a further 74.3m into the group.

Financial analysts welcomed the move, and described it as "a very positive event".

Polestar will use 21.8m of the cash to pay off disaffected bondholders, who had been pressuring the firm over its debt. It reached agreement with 77% of the senior note holders for the fresh deal, which sees them receive the cash plus new secured notes that mature in 2011.

Polestars annual interest bill currently more than 50m will be reduced by 13m as a result. The group has also agreed revised terms with its banks, understood to mean that 52.5m of scheduled capital repayments will be deferred for two years.

"Investcorp... really wants to put the business into a new perspective, where the management can focus on the business and not just financial issues," said one analyst. "This 74.3m means they have put in an extra 100m over the past six months, which is a lot and shows they really believe in it."

In a statement Polestar chief executive Barry Hibbert said the financial restructuring would "allow the management and employees to focus on improving operations and to trade from a renewed position of strength. It resolves the uncertainty that has surrounded the group and gives us a solid platform on which to build for the future."

Hibberts plans for a flatter group structure are already in evidence. The old six division structure is gone, and has been replaced by three main divisions: Polestar International, Polestar UK Print, and Polestar Direct Mail, which includes the Select and Packaging operations.

David Hollands new role as commercial director sees him take over responsibility for commercial sales, magazine sales and key accounts as well as Polestar Online and estimating and planning.

* Polestars supplier forum has been re-arranged for next month.

Story by Jo Francis