The preferred bidder to buy the Jackie Skelly Fitness chain of gyms out of examinership will repay €5.75 million to the company’s banks over time, according to the terms of the proposed deal.

Energie Group, a UK health and fitness group, will invest €2.3 million initially into the Irish chain, including a €1.3 million payment to reduce its bank debts.

The remaining €1 million will be used for a payment to creditors under the deal agreed with examiner Kieran Wallace of KPMG. The deal has been supported by the creditors and Mr Wallace.

Energie, which is based in Milton Keynes, will acquire nine of the 10 Jackie Skelly Fitness gyms, securing more than 200 jobs.