Construction and support services firm Interserve has secured additional short-term funding to ease off its immediate financial troubles.

The group has reached an agreement with key lenders to push back the test date for compliance with its loan covenants to March 2018.

Debbie White, Interserve’s chief executive, said the agreement provided more room for discussions with the lenders, with a view to securing its longer-term funding.

Interserve delivered its latest profit warning last month as it battled not to breach bank loan covenants. The firm is also preparing to cut around 200 jobs across its UK operations as part of a wider cost-saving drive.

The new facilities announced today totalling £180 million, comprise a £38m committed revolving credit facility, £37m of committed ancillary facilities, committed bonding facilities of £93m plus £12m of additional funding available by agreement with the lenders. The facilities expire on 30 March 2018.

In order to obtain these facilities, Interserve has agreed to close out its cross-currency swaps, which hedge exchange rate exposure on existing US Private Placement loan notes. The proceeds generated by closing out the swaps of approximately £44m will be used to repay existing borrowings from current bank facilities. Unwinding the accounting for the sterling value of the debt and the associated offsetting swap transactions will increase net debt by approximately £10m.

Debbie White said: “Securing these agreements puts Interserve on a firmer footing. Whilst there is still much to do, Interserve has significant opportunities based upon a strong client base and our dedicated employees. There is considerable potential for business improvement across the group.

“These short-term committed borrowing facilities, together with the ongoing work to clearly define the strategy and commercial structure for the business going forward, will bring further stability and clarity for our clients, our people and our shareholders.”

In September, Interseve launched a group wide performance improvement plan, Fit for Growth, aimed at improving cash and margin performance.

As part of this plan, Interserve said it would scrutinise its operating model and the cost base while focusing on market segments that were profitable and offered opportunity for growth.