Permira has secured a deal to restructure the debts of Borsodchem, the Hungarian chemicals company it owns, which will allow the UK private equity fund to repel a Chinese takeover and retain control.

Borsodchem announced on Thursday it, and its majority shareholder, had signed an agreement in principle with representatives of China’s Wanhua Industrial over a restructuring of its €1.1bn ($1.6bn, £1bn) debt and Wanhua’s “mid-term” role as a minority shareholder.