Consultancy WYG Group, which has three offices in Manchester, one in Cockermouth, and one in Liverpool, has confirmed its refinancing plans.
As planned, the international firm has written to its shareholders confirming the terms of its proposed refinancing and asked them to vote on the proposals to secure the financial future of the company.
If the shareholders vote in favour of the refinancing deal, the Group's banks will convert some £53m of debt into equity and provide new lending facilities totalling £58.25m and €38m of committed bonding facilities to help put WYG on a strong and sustainable financial footing.
A total 60.5% ownership of the company will transfer to the banks, 24.5% to staff and management and 15% to existing shareholders. As a result of this structure, WYG's listing on the stock exchange will be transferred from the Main Market to the Alternative Investment Market.
In an announcement made on the WYG website today, Paul Hamer, chief executive of the WYG Group, said: "The purpose of the refinancing is to reduce the level of the Group's debt and to create a strengthened and more appropriate financial structure that we can use as a platform to build a sustainable, strong and resilient long term business that is better positioned to compete more effectively in its chosen markets.
"We need existing shareholders to vote in favour of the proposed refinancing agreement to create a stable, long term financial future for the Company, secure around 2,700 jobs and create renewed confidence to our clients."
The voting closes on Monday 4 January 2010 and a general meeting will follow on Wednesday 6 January 2010 to seek final shareholder approval.
Without the majority of existing shareholders voting in favour of the proposed refinancing, it is likely that it would lead to the company entering into administration or some other form of insolvency procedure.
The WYG Group was set up to help grow businesses and is based across Europe as well as in Asia and Africa.