Labour has pulled itself back from the brink of bankruptcy by restructuring its loans and persuading the bulk of its backers to give the party until 2015 to repay the money.

Party officials have been locked in frantic negotiations with more than a dozen businessmen who lent Labour £15 million in the run-up to its 2005 election campaign. The loans, which were due to be repaid next year, threatened to sink the party.

Officials are due to announce the new loan agreements next week. They will present the move as a big step forward in Labour’s plans to put its finances on a stable long-term footing.Sources said that it would also allow the party’s fundraising team, led by Jon Mendelsohn, to draw a line under the past and begin a fresh charm offensive to attract new donors in the autumn.

Many of the existing lenders were embroiled in the cash-for-honours scandal. Insiders said that party officials had desperately tried to persuade the lenders to convert their loans into gifts. But only two of the tycoons — Lord Sainsbury of Turville, the supermarket heir, and Sir Gulam Noon, the curry magnate — were prepared to write off their money. Lord Sainsbury, a Labour peer, lent the party £2 million, and Sir Gulam lent £250,000.

The software millionaire Gordon Crawford, who lent £500,000, and the property entrepreneur Andrew Rosenfeld, who lent £1 million, have told Labour that they want their money back next year as originally agreed, with full interest paid.

Seven others, who between them are owed slightly more than £12 million, agreed to defer their loans to 2015. They include Rod Aldridge, the founder of Capita (£1 million), Chai Patel, former chief executive of the Priory (£1 million), Sir David Garrard, the property magnate (£2.3 million), Richard Caring, restaurateur and owner of The Ivy (£2 million) and the stockbrokers Derek Tullett (£400,000) and Barry Townsley (£1 million).

Sources said that the restructuring would give the party breathing space to try to attract new donors and reduce its dependence on the trade unions, who have been propping up its finances. One union, Unite, had publicly pledged not to let Labour go bankrupt, but insiders say that the party was desperate to regain some control.

Labour finished last year with debts of £18.9 million. According to the Electoral Commission, the party received only £3.1 million in donations in the first three months of this year, with the majority of that coming from the unions. Three big business donors — the private equity gurus Sir Ronald Cohen and Nigel Doughty, and the hedge fund manager John Aisbitt — each contributed £250,000.

Sources say that new donors had been put off because any funds they gave would have been used to pay interest on the existing loans. With the restructuring complete, officials are confident that they can get those donors onside. “They are being lined up,” one source said. “Now we can demonstrate that we will give money to a fighting fund for the next general election.”

A Labour spokesperson said: “We are grateful to all our lenders fotheir continuing support as we address the financial challenges the party faces. Of course we keep our finances under ongoing review and work to ensure the party’s finances remain on a stable long-term footing, but are unable to comment further at this stage.”

Some were sceptical that the restructuring would make any difference at all. Lord Oakeshott, the Liberal Democrat’s Treasury spokesman, said: “They are clearly not in the same league as the Tories now. The Tories have pots of money to fight an election campaign while Labour is still struggling with the legacy of the last one.”

The cash-for-honours scandal also continues to deter Labour donors. Mr Mendelsohn’s predecessor, Lord Levy, was questioned by police after it emerged that many of the businessmen he had encouraged to donate had been nominated as Labour peers. He was later cleared of wrongdoing.

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