Baxi, the maker of central heating boilers, is in talks with its lenders to ease the terms of its £515m debt obligations in an attempt to stave off the risk of it defaulting on payments.

The company, owned by private equity firms BC Partners and Electra, is struggling to meet its high debt repayments in the face of rising interest rates and weaker demand for its products in some European markets. The company said that it did not expect to have any trouble reaching an agreement with the lenders.