Interserve said it had reached a deal with its lenders to defer a debt payment due early next year.
The company also said it was considering handing them its profitable building materials business RMDK as it works to avert a Carillion-style collapse.
"Interserve continues to be in constructive discussions with its lenders, who are fully supportive of Interserve's business plan and management team," the British construction and services company said today.
"The key commercial principles on which the deleveraging plan is expected to be based have now been conditionally agreed between Interserve and all lenders," it added.
Interserve shares have dropped nearly 90% this year as it struggled with a weak construction market and more than £600m in debt.
Carillion's collapse in a mass of debt and pensions dues in January forced the UK government to step in to guarantee services ranging from roadworks to school meals.
It also led to a parliamentary inquiry into the extent to which private companies should be running essential services.
Interserve, which employs 75,000 globally and has thousands of UK government contracts to clean hospitals and serve school meals, had decided in 2016 to keep RMDK because it brought it more international exposure.
RMDK, which accounts for a little less than 10% of Interserve's revenue but is relatively more profitable, has been valued by analysts at up to £300m.
Interserve, which maintains eight out of 10 of Britain's busiest railway stations and cleans 2,490 London Underground carriages every evening, said a portion of new equity will be offered to shareholders and new investors.
But the debt reduction plan was not dependent on a successful public offering and the final form of the plan to cut debt will be announced in early 2019, it added.
Investors took up just 38% of British builder Kier Group's share issue earlier this week, highlighting tough times for the construction sector.
Before today's plan was announced, Interserve's combined credit score, which measures on a scale of 100 to 1 how likely a company is to default in the next year, was "1", Refinitiv Eikon data showed.
