Troubled retailer Debenhams has said they will give, "careful consideration" to Mike Ashley's £150m loan.
If the deal conditions were approved by shareholders, the £150m loan would be interest-free, Sports Direct said.
Of the total amount of the lending, £40m would be used to repay Debenhams' £40m bridge facility with an attendant release of security.More news: Southgate names newly-eligible Rice in England squad
"Any third-party loan offer on these terms would require both the consent of our revolving credit facility lenders and noteholders and material amendments to existing facilities".
In a letter written just days before Mr Ashley launched an attempted coup to install himself on the Debenhams board, Sports Direct took issue with the retailer's results statements, accusing the board of giving misleading communications. If not, the loan would bear interest at 3 percent.
Debenhams branded the complaints "unfounded and self-serving".
"Debenhams would agree to put a proposal to its independent shareholders to approve the issue of circa 5% new shares at the prevailing market price to Sports Direct (so as to increase Sports Direct's shareholding to circa 35%)".More news: Global Artificial Intelligence for Healthcare Applications Market 2019 Segmented by Potential Applications
The retail tycoon demanded a general meeting of shareholders to push out all but one of the existing board members and for him to take on an "executive role" in the struggling high street firm.
Mike Ashley is the founder and majority shareholder of Sports Direct. Past year he bought both House of Fraser and Evans Cycles, and has previously been linked to bids for Patisserie Valerie and HMV.
The letter claimed that the board and chief executive of Debenhams had "no place leading a plc or in making public statements to the market", as its 10 January statement had proved "at best impossibly optimistic or at worst deliberately misleading" given that it had soon after put out a profits warning despite an improvement in sales performance.
The company responded with the letter, which accused Debenhams of being "misleading" by stating in January that it continued "to generate cash", despite ongoing discussions to refinance the business.More news: England axe Cokanasiga for Scotland clash
Debenhams confirmed early on Thursday morning that it had received Ashley's offer and that it was under consideration.