Feltex is under pressure from its banker ANZ to nail a financial rescue by Australian company Godfrey Hirst as shareholders ponder their position on it and a competing New Zealand bid.
The troubled carpet maker said today ANZ sent a letter to it late on Friday saying it will keepbank facilities running but it wants a formal sale agreement entered into "expeditiously".
The ANZ wants Feltex and Australian bidder Godfrey Hirst to resolve outstanding issues and details of steps toward a sale.
"The ANZ further advised that if Feltex and Godfrey Hirst were not in a position to confirm this to the ANZ by 9am this morning, then the ANZ reserved all of its rights in respect of any past or current events of default by Feltex, including the right to withdraw its agreement not to take any action in respect of such events of default," Feltex said in a statement to the market today.
Feltex said that Godfrey Hirst was still considering concerns it had after it saw the company's books. It had advised Feltex that it did not see any value in signing formal sale documentation while there remained a possibility of an alternative competing proposal from New Zealanders Graeme and Craig Turner or any other party.
"Godfrey Hirst has advised Feltex that it is considering its position in relation to its further participation in the process and is unwilling to provide any certainty regarding its proposal at this stage," Feltex said.
The position has been advised to ANZ and Feltex is expecting to hear back from the bank again today.
The New Zealand Shareholders Association is meeting today to consider its view of the competing bids for the carpet maker.
Feltex and the ANZ received a letter on Friday from the Turners stating they had been working toward finalising a proposal which was in the best interest of Feltex, its shareholders and its creditors, in particular ANZ.
The Turners said they expected to present their full offer to the Feltex board on or before Friday, September 8.
