Italian construction and civil engineering company Astaldi will collect 225 million euros ($253.7 million) from peer Salini Impregilo.
Astaldi will use the net funds partially to repay its debt and the remaining owed to unsecured shareholders.
As part of the infusion, Salini will gain a 65 percent stake in Astaldi.
Astaldi said its board had approved a proposed accord with creditors and a plan consistent with Salini’s offer.