Under the terms of the agreement Polestar's owners, which include JPMorgan, Bluebay and Contrarian, will exchange the "majority" of the printer's outstanding debt for equity.
Barry Hibbert, chief executive of Polestar, said: "Polestar has agreed with its lenders and shareholders to dramatically strengthen its balance sheet by swapping the majority of its debt into equity.
"This will allow the business to be in the best possible position to take advantage of the expected industry consolidation, which is likely to speed up as the recession takes its toll."
Polestar, which cut its total debt from £814m to £257m in a £557m debt-for-equity swap in December 2006, declined to comment on the specifics of the latest transaction.
Polestar cuts debts with further debt-for-equity swap
Polestar has dramatically reduced its remaining debt after securing its second debt-for-equity swap in two years.
