There is optimism that a rescue deal for Monarch Aircraft Engineering will be finalised this week.

The former owner of collapsed Monarch Airlines is leading attempts to secure the future of the aircraft maintenance arm

Greybull Capital has made a “significant funding commitment” to enable the engineering business to announce late on Friday that it was close to finalising the terms of a new ownership structure.

The company’s existing lenders PNC confirmed a 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, according to the company.

The deal is expected to completed this week upon completion of all relevant documentation and approvals.

No further details of the terms and sums involved were disclosed.

Monarch Aircraft Engineering Limited (MAEL) was forced earlier this month to deny being subject of a winding up order or any other form of administration or insolvency process.

Monarch Aircraft Engineering chief executive Chris Dare 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.”