Troubled British retailer Kwik Save was yesterday granted more time by a judge in Manchester to arrange a refinancing package that would save the ailing business.

Cavan-based businessman Brendan Murtagh, who made a loan to Kwik Save of about €7.5 million earlier this year, is believed to be involved in securing new investors for the retailer.

Mr Murtagh supports plans by new management to rebrand the business as Freshexpress in a bid to turn it around. It is understood that Mr Murtagh will not be directly investing any money in the business under the restructuring plan.

Informed sources said Mr Murtagh does not own any equity in Kwik Save. His involvement is by way of a debenture, which is thought to give him preferential status in the event that Kwik Save's rescue bid fails.

Kwik Save has 147 stores in England and Wales. Sources said the leases on these properties were valuable and that Mr Murtagh's loan was not at risk.

Earlier this week, Mr Murtagh sold one-third of his holding in Kingspan, a building materials group he helped found with his brother Eugene, earning him €48 million. It is understood that he will not use any of this money for Kwik Save.

The court hearing granted an adjournment until next week of an application to place the company into administration.

In a statement, Kwik Save said: "The directors have been seeking the agreement of a refinancing package that will secure the future of this very complex and diverse business. Along with KPMG, they have been working hard to ensure an equitable solution for all parties.

"Over the past 10 weeks, since the business was taken over by new management, there has been considerable time and capital injected. However, it became evident that, unless the business was restructured, additional funding would not be forthcoming and it would not have a strong financial future."

Kwik Save closed 22 stores earlier this week and has shut 79 outlets in recent weeks.