Richard Inder: Time short for Thomas to pull off a funding deal

One of the most curious developments at Feltex has been former non-executive director Peter Thomas' decision to take the helm of the troubled carpet-maker.

Thomas, 57, should have been entering the golden years of a career at the top echelons of business.

From 1981, he worked as an executive for banking giant Credit Suisse First Boston - now called Credit Suisse. There, said sources, he was treated as a troubleshooter, jetting between the United States, Europe, Asia and Australasia fixing troublesome investments.

Business elites valued his intelligence and what some see as an aggressive "take-no-prisoners" attitude to business. They cultivated his friendship as he cultivated theirs. Here in New Zealand, for instance, he is reputed to be a close friend of former brewing magnate and one of the country's most powerful businessmen, Doug Myers.

His work at Credit Suisse and later roles as a consultant to the bank; his seats on the boards of companies in Australia and Britain and his involvement with the Credit Suisse First Boston Asian Merchant Partners (CSFBAMP) - the private equity fund that sold out of Feltex when it was floated on the NZX - should have left him more than ready for a happy retirement.

The most logical explanation is that he felt obliged to do it. As he had an interest in CSFBAMP, he appears to have profited from the float - although it was not clear by how much. This gain has come at the expense of New Zealand investors.

Restoring value to shareholders would make amends.

It was a bold call. At the time he took the reins officially last November, the shares were less than a third of their float value and the chances of their ever returning to such heights were slim.

He could have stayed as a non-executive and blameless - relative to the executive at least.

And if his decision to step up is perplexing, so too is his performance since.

It was never clear that Thomas would be great at manufacturing. His resume shows little experience in the dirty business of industry.

Finance, providing the cash to keep the company, was his forte.

However, in this domain, the one in which he should have excelled above all others, he has also failed miserably.

Thomas - and the board - have left Feltex in a terrible negotiating position. The company has breached its banking covenants, its debt level surpasses the value of the entire business and its bank has warned Feltex that it has until September before it calls time.

Feltex is against the wall and fast running out of options.

With his banking background, he should have been able to convince those who previously had entrusted him with hundreds of millions.

Thomas may pull off a deal. But his failure - so far - now numbers among the several signs that will leave potential white knights even more wary of the troubled carpet-maker.