Risanamento, the heavily indebted Italian property developer, took a further step away from possible bankruptcy on Thursday after its creditor banks agreed to refinance €272m ($388m) of long-term debt.

The agreement followed a deal on Wednesday in which the bank creditors, which include most of Italy’s leading banks, in effect took control of Risanamento in return for a €500m refinancing package that included converting €350m of existing debt into equity and injecting €150m of new capital.