Danka Business Systems is to put a three-point plan to reduce and control its 376m ($551m) debt before shareholders.


The package includes the sale of Dankas outsourcing division, Danka Services International (DSI), for which the company said there were a number of interested parties.


It also recommends an exchange offer for Dankas outstanding corporate bonds as well as issuing new corporate bonds.


Proceeds from the sale of DSI would be used to pay off some of the firms debt, which would then be transferred from Dankas existing bank.


Danka UK managing director Paul Dumond said: Our parent is basically trying to reduce its high level of debt partly through the disposal of DSI. But its business as usual from Danka UKs perspective. If the debt is restructured itll be beneficial for us well have a secure footing in the long term.


In 1999 the UK arm of DSI made a pre-tax profit of 3m on turnover of 34.7m. But in the same year Danka UK plc made a pre-tax loss of 12.2m on turnover of 127m.