The embattled Pie Face franchise can survive now that it has a lifeline and breathing space, say its administrators.
Creditors approved a restructure in which investors TCA Fund Management Group will refinance Pie Face before a $10 million US capital raising.
The bakery cafe group collapsed a month ago with debts estimated at more than $20 million owed to the tax office, creditors and employees.
Administrators Jirsch Sutherland said the group had been trading insolvent for more than a year and had not made a profit in the past five years and possibly ever.
The administrators shut 20 poorly performing stores and cut 150 jobs around Australia in the week after the company's collapse.
The rescue plan gave more people a chance of getting their money back than if it was liquidated, particularly employees owed $3 million in mostly superannuation, said administrator Sule Arnautovic.
There were doubts the company had sufficient assets to meet compensation claims if it folded.
Limits have been placed on executive pay and bonuses.
"If the company continues to trade and does what it can do, then all the staff will get their money and the creditors get far better returns," he told AAP.
"Creditors took a bird in the hand as opposed to going through a potentially unfunded legal dispute."
Unsecured creditors such as food and other trade suppliers owed money by Pie Face stood to get 15 cents in the dollar, he said.
"We've given them breathing space and a debt compromise but they've actually got to get stuck into it and sort it out," Mr Arnautovic said.
Franchisees have criticised the company's management under founder Wayne Homschek for trying to grow too quickly globally, leasing properties with excessively high rents and securing expensive supply deals as predicted sales growth did not occur.
The new board includes Mr Homschek, former Howard government minister Andrew Thomson as chairman, former director John Nicolis and TCA representative Bruce Wookey.
Pie Face will get several years to repay debts.
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