One of the world's largest bakery companies, Aryzta, has agreed an underwriting deal with five banks.
This sets the stage for raising €800m in new capital to strengthen its balance sheet.
Shares in the maker of McDonald's burger buns and Otis Spunkmeyer cookies were also 18% higher in Dublin trade this afternoon.
The gains came after it named Bank of America Merrill Lynch and UBS as lead managers, and Credit Suisse, JP Morgan and HSBC as joint global coordinators of its capital raising.
The Swiss-Irish company has warned on its profits at least three times since 2017 due to rising distribution and labour costs in North America.
It also had problems with undocumented workers at a US bakery, high butter prices and weak consumer spending in some European markets, particularly Britain following its vote to leave the European Union.
Aryzta, which said last month it needed a cash infusion following a net loss of more than €1 billion in 2017, also today it had won the consent of a majority of its lenders to amend an existing facilities agreement.
Analysts said the deal with banks and lenders "shows Aryzta is making progress towards the capital increase" and helped it reduce uncertainty.
The company's shares are down more than 75% this year.
Aryzta's chief executive Kevin Toland, whose company also makes Cuisine de France bread, is still hoping to unload at least €450m in assets.
This includes its France-based Picard frozen food unit acquired during an ill-fated buying spree.
Aryzta also named new independent board members - former McDonald's USA president Michael Andres, Green Chile Foods Chairman Gregory Flack and Tim Lodge, a former chief financial officer at agribusiness company COFCO International - to stand for election at its coming annual general meeting on November 1.
"Each brings significant and diverse industry experience which will be invaluable... as we deliver on what is a multi-year turnaround," Aryzta chairman Gary McGann said in a statement.
