The tenant of Dundee nightclub the Reading Rooms has settled a debt over fees owed for playing music in public.
The Blackscroft venue is now set to undergo a major overhaul that could see it opening up to revellers during the day.
The club was being chased by PPL UK which deals with fees for venues that want to play music.
These fees are used to pay royalties to artists.
PPL had taken an action against tenant Grant Grieve last month over the outstanding bill, but the case was settled just days later.
Now Mr Grieve is planning an overhaul worth up to £50,000 that will result in a daytime cafe opening next spring.
Derek Souter, of Reading Room owners Blackscroft Property Company, said the PPL debt had been as a result of an oversight.
Mr Souter is involved in plans for a new restaurant next door to the nightclub but insists it’s the latter that has more potential.
He said: “The Reading Rooms has a fantastic garden area. They plan to relocate the bar, which gives them room for a commercial kitchen, and then they can have a daytime cafe playing music that they play at night but on a more chilled-out basis.
“The location is superb. The garden area has massive untapped potential.
“The Reading Rooms is among the top five UK nightclubs and that will continue.
“But this will allow them to have things like acoustic guitarists playing in the garden during the day. It’s a beautiful building inside, too.
“We work next door to them and we would support them in what they’re trying to do, because the area has nothing like this.”
The restaurant plan would be spread over two floors and feature an outdoor decking area.
It would also create up to 20 full-time equivalent jobs, according to plans lodged with Dundee City Council.
The application said the outdoor decking would not conflict with the look of the nightclub next door.