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Eddie Stobart Logistics cut its growth outlook following a number of adjustments made to half-yearly results as auditors continued their review.
The company also said that DBay would not be making an offer for the entire company, but rather acquire a 51% in its Greenwhitestar Acquisition business.
The impact of these adjustments now meant that earnings (EBIT) for the half year fiscal 2019 would represent a loss of not less than £12m, and EBIT for the full year of no more than £2m, the company said. But losses could be higher as an ongoing review by its auditors 'may give rise to material further adjustments,' it added.
That was below the previous guidance of EBIT in the range of £10m to £11m.
As a consequence of a reduction in EBIT, poor cash collection and the company's historical dividend policy, net debt for year-end was expected to be approximately £200m, which company warned was unsustainable.
To improve liquidity, ESL entered into an agreement to sell a 51% stake in Greenwhitestar Acquisitions to a fund managed by DBAY Advisors.
Under the agreement, the fund would indirectly acquire a 51% stake in Greenwhitestar and agreed to inject approximately £55m of new financing into the group's operations.
The proposed transaction would be put to a shareholder vote at a meeting on or around 2 December.
'The proposed transaction announced today provides Eddie Stobart with the opportunity to move forward and look to deliver sustainable growth and profitability from a stable footing.' said Sébastien Desreumaux, CEO of Eddie Stobart.