Real Estate Opportunities (REO), the group behind the planned £5.5bn redevelopment of Battersea Power Station, has secured agreement over the deferral of debt repayments.

The developer has reached a deal with its loan note holder that will see "all principal and interest payments" put on hold until 31 May 2011. It follows an announcement on 7 September that REO had been given an extension on a combined £262.5m loan facility with the Bank of Scotland and Bank of Ireland - on behalf of NAMA.

However, the extension - until 31 August 2011 and comprising the £225m Battersea Power Station facility and the £37.55m site assembly facility - had been rested on the latest agreement. A REO spokesperson said: "A further announcement setting out the agreed financial restructuring terms will be made in due course."

REO's plans to regenerate Battersea Power Station have been drawn up by architect Rafael Viñoly's and includes 700,000sq ft (65,032sq m) of restaurant and retail space and a hotel. A riverside park, an extension to the Riverside Walk through to Battersea Park and public access to restored historic areas of the power station also feature as part of the proposals, which have been submitted to Wandsworth Council.