Britain's Interserve to cut debt to 275 million pounds through share issue

(Reuters) - Interserve Plc, which is working to avert a Carillion-style collapse, said on Wednesday it had reached a deal with creditors that would cut its debt to about 275 million pounds by issuing new shares.

The company, which has struggled with a weak construction market and has more than 600 million pounds ($776.34 million) in debt, said it would issue about 480 million pounds worth of new Interserve equity.

(Reporting by Noor Zainab Hussain and Arathy S Nair in Bengaluru; Editing by Arun Koyyur)