European buyout firm Doughty Hanson is reaching the end of long-running restructuring talks over 20:20 Mobile Group, a mobile logistics firm, which could result in a rare example of a financial sponsor injecting extra equity into a struggling portfolio company as market conditions deteriorate.

Sources close to the restructuring said 20:20 Mobile's lenders, led by Royal Bank of Scotland and Mizuho, are mulling Doughty Hanson's proposal to inject a further £15m of equity into the company to improve its capital structure, and talks may reach a conclusion next week. Doughty Hanson’s initial equity on the deal was £105m and the company was lent £315m in mezzanine and senior debt.