NEGOTIATIONS crucial to the future of the GPA Group have continued in the United States, with pressure on the parties to reach agreement by the weekend. The Pennsylvania Public School Employees Retirement System (PSERS) has so far refused to support the $4.5 billion (£2.8 billion) refinancing plan which requires the unanimous approval of all the group's investors and creditors to proceed. A spokesman for PSERS, which has million invested in GPA, refused to comment yesterday. A GPA source said the group would make no further comment until negotiations were completed.

US market sources said GPA needed to get the agreement of PSERS soon for a number of reasons. It must have the refinancing well under way before its financial year ends in March and the agreements with some of the other creditors which approved the refinancing may have time limits for its completion.

The latest restructuring is required because GPA is committed to repaying bank debt of $2.5 billion which falls due in September 1997. While this repayment is some time off, failure to rearrange it now could make it difficult for the auditors to approve the group's next annual accounts.