Party City Holdco Inc. has modified a key deal with some of its biggest lenders, tweaking its plan to exit bankruptcy after struggling to meet financial projections.

Lenders that provided the party supply retailer with bankruptcy financing will now have the option to be repaid in second-lien notes instead of cash, according to court papers. Creditors backstopping Party City’s exit from bankruptcy can also purchase a slice of the new notes in addition to equity, rather than just buying the stock.

The company plans to issue $232 million of new debt backed by the company’s assets, with interest to be paid in-kind or in cash at a 12% rate, court papers show.

The switch-up comes after Party City hit snags in its bid to restructure a heavy debt load, which began in January. In June, company lawyers said that Party City hadn’t met certain benchmarks underpinning its existing plan. That same week, its auditor quit after more than two decades working for the company.

In the latest financial projections, the company’s year-over-year growth rate for comparable store sales has been revised down to -8.4% from a previous estimate of -2.5%, court papers show. The company expects that metric to grow beginning next year.

The voting deadline on the plan is August 17, with a hearing to approve the arrangement scheduled for August 24.

Party City declined to comment.

The case is Party City Holdco Inc., 23-90005, US Bankruptcy Court for the Southern District of Texas.