Interserve has agreed on a rescue deal with lenders in attempts to avoid a collapse similar to Carillion.

The outsourcing firm said that it hopes to convert its £500 million debt into equity, where part of this new equity will be offered to shareholders and new investors in a public offering.

“The key question remains as to whether this new restructuring arrangement finally draws a line under the problems that have dogged the company since the collapse of Carillion almost a year ago,” said Michael Hewson, the chief market analyst at CMC Markets.

Interserve is one of the UK’s biggest outsourcing firms and employs 75,000 people worldwide.

Shares in the troubled group opened up more than 18%. The group’s stock market value has plunged over 90% this year.

The week construction market saw the group’s market value fall from a peak of £1 billion in 2014 to just £16.2 million.

Interserve said on Friday that talks with its lenders were “constructive”.

Debbie White, who is the chief executive 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.”

The group agreed on changes to its structure as part of its “commitment to growth strategy” earlier this week. Interserve merged its citizen services division with its support services unit.

Shares in the group (LON: IRV) are trading -0.91% at 10.78 (1235GMT).