One of the country's most celebrated book businesses, Kenny's Bookshop in Galway has secured its future after negotiating a significant write-down on its crippling bank debt.

Kenny's Bookshop was established in 1940 in Galway and President of Ireland, Michael D Higgins has had close ties with the Kennys over decades.

The business has been loss-making in recent years and has breached the terms of its banking facilities in 2011 and 2012.

At the end of December 2012, the book business had bank loans and overdrafts totalling €8.52 million.

The firm’s accumulated losses at the end of December 2012 totalling €7.3 millon after incurring further losses of €241,784 that included a write down of assets of €121,309.

However, accounts to a note filed with the accounts states that “subsequent to year end, the company concluded negotiations with its lenders and a settlement, which includes a significant debt waiver, was agreed”.

The note states: “This settlement is in the final stages of implementation. The remaining debt has been refinanced with another banking institution.”

The note adds that “this post year end financing will eliminate the company’s net liabilities position and return the company to a point where it can service its debt commitments from operational cash flows and meet its financial obligations as they fall due.”