Private equity firms Kohlberg Kravis Roberts and Goldman Sachs Capital Partners are to provide Kion, the German forklift truckmaker, €100m ($140m) in new funding as part of a deal with its banks to ease the terms of its debt.

The additional liquidity cushion will be provided in the form of a loan, which will have the same terms as its existing senior debt, according to people close to the company. The proposal to inject the additional funding was presented to lenders on Wednesday in Frankfurt, along with a new business plan for the company and a request to reset covenants, which would avoid any potential breach of covenants later this year.