Derby's Playhouse is to reopen after creditors voted to accept an offer of £300,000 from the board trying to rescue it.
The creditors accepted the deal, which will give them all a share of the money, at a meeting in Derby.
An alternative plan put forward by Derby City Council was turned down.
The theatre, which has faced financial trouble, was put into administration last year, but reopened for a Christmas play and closed again in February.
Playhouse board chairman Jonathan Powers, said the board had fought along with staff and supporters to keep the theatre afloat.
The city council offered to pay £325,000 to buy the assets of the Playhouse and liquidate the company, but the creditors decided to reject that deal as they would have ended up with less money.
The theatre was put into administration in November last year and the Arts Council later decided not to renew its annual funding of about £700,000 but instead awarded its grant to Derby City Council.
The Arts Council then launched a claim to get back £1.4m it had previously awarded to the Playhouse but it later suspended its claim.
The first show will be The Killing of Sister George on 13 September.
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