MONTGOMERY, Ala. - KinderCare Learning Centers Inc. said its board has reached an agreement with creditors that is expected to lead to a major financial restructuring for the child-care company.

KinderCare said it expects that long-term debt, including accrued interest, will be reduced to about $237 million, from $590 million.

In exchange for forgiveness of debt, creditors will become the owners of 86.5% of KinderCare's outstanding common stock. Trust Company of the West, Cargill Financial Services, and Dickstein & Co. will collectively own a majority.

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