Outsourcing group Interserve said it had agreed the commercial terms of a debt-reduction plan with its lenders.
The plan would see the company cut net debt to around £275m by issuing c.£480m of new equity.
Existing lenders would provide an additional £75m of new liquidity through the provision of a new debt facility with a maturity of 2022.
'Agreeing the key commercial terms of the deleveraging plan with our lenders, bonding providers and pension trustee is a significant step forward in our plans to strengthen the balance sheet,' chief executive Debbie White said.
'The board believes that this agreement will secure a strong future for Interserve.'
At 1:56pm: (LON:IRV) Interserve PLC share price was +1.04p at 14.21p