The firm’s two major shareholders – who hold a 35% stake – are set to vote in favour of the deal as the company’s debts hit £513m.

Interserve said: “The increase in the current borrowing limit is required as significant balance sheet write-downs are expected to be contained in the 2017 Financial Statements.

“As announced on 21 March 2018, discussions with the Group’s lenders and other financial stakeholders have continued to progress well, with agreement in principle on major commercial terms of the Group’s proposed refinancing now reached. 

“These commercial terms remain subject to credit approval from all providers before the new facilities are finalised.

“With the addition of the new facilities the Group will have cash borrowing facilities of £834 million immediately following the refinancing completion and through to September 2021, subject to certain step-downs in the new facilities over the period.”

Interserve’s results will be published on April 30.