Englewood, Colo. (Reuters) -- Maintenance products maker Katy Industries Inc. said recently that it was in talks with a potential buyer of a substantial equity position in the company.

Under the terms of the deal that the company is now considering, the purchaser would buy a minority of the company's outstanding common shares at a premium to the current market price, and would also invest directly in the company by buying nonvoting convertible preferred stock.

The deal would be subject to shareholder approval and restructuring of the company's existing bank debt. Katy said that there could be no assurance that an agreement would be reached or completed.

In November, the company said it was exploring strategic options and that it was engaged in talks with one possible purchaser. Those discussions have been superseded by discussions with the same potential purchaser relating to the transaction referred to above, Katy said.