Japanese dairy products manufacturer Snow Brand Milk Products has said it has been granted a ¥30bn (US$250m) debt waiver from one of its main lenders to enable the troubled company to recover.

Snow Brand will also issue new common shares worth ¥10.9bn for third party allotment and ¥20bn worth of preferred shares in debt-for-equity swaps.

The company said that the stock issues would allow Snow Brand to increase its capital and reduce debts, reported Agence France-Presse.