Monarch Aircraft Engineering (MAEL), which was retained after its parent airline collapsed last October, said it was “close to finalising” terms of a new ownership structure.

MAEL confirmed its existing lenders PNC had given its “willingness to provide continued facilities and support” as part of the proposed transaction.

“Key customers have also provided their support to the business and the transaction,” MAEL said in a statement.

The deal is expected to complete this week following all relevant documentation and approvals.

Chris Dare, MAEL chief executive said: “We have made significant steps forward this week in our journey from being a division of Monarch Group to a successful, standalone entity.

"We are confident of finalising a new, exciting and long term ownership structure for our business in the days ahead.

“At heart we are aircraft engineers, focused on delivering the highest maintenance standards to airlines from across the globe. All we want is to go full throttle to a new future for our business and our customers.”

Earlier this month, MAEL, which employs more than 800 people, refuted reports of winding-up proceedings against it.

According to Sky News, HMRC was preparing to take action over an unpaid tax bill.

MAEL though said it has not been served or made subject to a winding-up petition or order, or “any other form of administration or insolvency process”.

The company said it had established itself as an independent aircraft maintenance company and strengthened its customer base through new contracts with a number of "leading airlines".

Monarch Airlines fell into administration this time last year, leaving 110,000 passengers stranded overseas and sparking the largest peacetime repatriation in British history.