Xerium in March warned that it might be forced to seek bankruptcy protection if it couldn’t revise the terms of its debt. The company is struggling with slowing sales of its paper-production equipment, especially in North America.

Late Friday, the company announced that its more than 60 lenders had agreed to new terms.

The agreement includes various restrictions on Xerium’s business, including limits on capital expenditures and acquisitions. The deal also prevents Xerium from paying a dividend to investors.

“We appreciate the active engagement and support of our many lenders, who concur with the recently announced new strategic direction of the company,” said CEO Stephen Light, in a prepared statement. “Substantially reducing our debt ... is at the very heart of our strategic plan to improve the company, enhance operational efficiencies, and maximize value on behalf of our numerous stakeholders.”

Xerium has 35 manufacturing facilities in 15 countries and 3,800 employees, including about 50 at its Youngsville headquarters, northeast of Raleigh.

Xerium shares were unchanged at $4.67 in morning trading today. The shares have more than tripled since March 19, when they closed at $1.09.