The UK's troubled Winchester Entertainment has reached a $2.5m (£1.53m) settlement with German fund MBP after a dispute over payments on Last Orders.

The agreement sees $1.6m (£980,000) paid to Winchester in cash. The AIM-listed UK company will receive the balance of $906,500 (£550,000) in instalments over the next six months.

The cash brings a welcome injection of funds to Winchester, which effectively put itself up for sale last year saying it is considering "strategic options".