Slater and Gordon shares have doubled in value after the struggling law firm's lenders gave it a two-year respite from its debt repayments.
The deal means the law firm, which in February reported a first-half loss of $958.3 million, should avoid insolvency.
Its debts have been restructured as term loans, with the first $315 million tranche due for maturity in May 2018.
The lenders have asked Slater and Gordon for more frequent updates on its finances and not to declare any shareholder dividends, but the company's shares still rocketed on the news.
The stock gained 29.5 cents, a 100 per cent rise, to 59 cents by the close.
The law firm had been under a cloud due to the huge writedown in its recently acquired UK operation.
The company lost more than 90 per cent of its market value in the past 12 months and had struggled to convince its lenders to continue with its existing debt facility.
"We are confident that the amendments we have entered into today with our lending group provide us with the flexibility and time to execute and continue our performance improvement program," managing director Andrew Grech said in a statement.
Slater and Gordon still faces at least two class action suits on behalf of shareholders who have suffered losses.
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