Interserve provided a progress report to the Stock Exchange this morning on its deleveraging plan.

It stated: “Consideration is also being given to whether it would be in stakeholders’ interests for the board to agree to lender requests for RMDK to be placed in a separate holding company owned by the lenders.”

RMD Kwikform has been estimated to be worth £250m-£300m and could be later sold off in a managed way rather than risking a cut-price deal in a fire-sale.

In the first half of this year, RMD delivered over £18m profit from revenue of nearly £100m, accounting for just under half of pre-exceptional group operating profit.

Interserve said “construction discussions” are continuing with lenders to reduce its £650m debt pile.

It added that the banks are “fully supportive of Interserve’s business plan and management team.”

A proposed debt for equity swap would see banks write-off loans for shares wiping-out value for existing stakeholders.

Final terns of the deal are expected to be announced early in the New Year.

Debbie White, CEO of Interserve, said: “This progress on the Deleveraging Plan is excellent news for all our employees, customers and suppliers.

“It will provide us with a strong balance sheet and enable us to move forward with confidence and the ability to improve our business and deliver our long term strategy.”