UPDATE 3-Blacks Leisure creditors back rescue plan

* CVA proposal backed by 97 percent by value of creditors

* Landlords' group says "little choice" in matter

* Shares up 42 percent

(Adds British Property Federation comments, updates shares)

LONDON, Nov 23 (Reuters) - Creditors of Blacks Leisure Group BSLA.L have overwhelmingly voted through a rescue plan that should allow the British outdoor goods retailer to stay in business.

The company, which runs the Blacks Outdoor and Millets chains, said its proposal for a company voluntary arrangement (CVA), an increasingly popular insolvency process, was supported by over 97 percent in value of creditors who voted at meetings on Monday.

That was well in excess of the 75 percent figure it required for the proposal to succeed.

Shares in Blacks, which lost 44 percent of their value over the last three months, were up 42 percent at 40 pence at Monday's close, valuing the business around 16.2 million pounds.

Earlier this year creditors in British sportswear retailer JJB Sports (JJB.L) and home improvement retailer Focus DIY backed CVA rescue plans. [ID:nLO590659] [ID:nLT92057]

Blacks' CVA will free it from the claims of landlords of 101 stores which are closed or in the process of closing, and compromise the claims of other landlords.

The firm had also proposed to vary the terms of 291 store leases to allow monthly rather than quarterly rent payments for 18 months. [ID:nL3541971]

In return landlords will share a compensation fund of 7.25 million pounds.

Backing for the CVA will also see Blacks' lender Lloyds Banking Group (LLOY.L) release 42.5 million pounds of new facilities.

"This outcome is a powerful endorsement by the creditors of the company that the CVA is in the best interests of all concerned," said Blacks' Chief Executive Neil Gillis.

"With this support secured, we can now focus on realising the potential of the group's market leadership position in outdoor retail once again."

The British Property Federation (BPF), whose members include Blacks' landlords Land Securities (LAND.L), British Land (BLND.L) and Warner Estate (WNER.L), said in a statement that the landlords "had very little choice in this matter".

"While this CVA has been transparent and covered landlords' empty rates payments on closed stores, it has not taken any bite out of shareholders' or other creditors' pockets," BPF chief executive Liz Peace said.

"Landlords have borne all the pain, and, when you consider that many of our pension funds are invested with them, it is clear that this is not fair," she said.

(Reporting by James Davey, additional reporting by Daryl Loo; Editing by Mark Potter and David Cowell) ((james.davey@thomsonreuters.com; +44 20 7542 7674; Reuters Messaging: james.davey.thomsonreuters.com@reuters.net)) ($1=.6020 Pound)