Troubled carpetmaker Feltex says its bank, ANZ, has set an 8am deadline tomorrow for bids for the company to be in.
It said any offer had to be fully funded. The bank said it would not allow any further credit drawdown.
Australia's Godfrey Hirst, which yesterday warned its proposed $141.8
million acquisition of Feltex had no reasonable prospect of success, said it would not be bidding by the deadline.
"Feltex has been advised by the ANZ Bank of a deadline of 8am on Friday 8 September, by which the ANZ Bank must receive details of any acceptable offers for the company or its businesses or to recapitalise the company," Feltex said in a statement.
An escape from receivership now lies in the hands of Sleepyhead principals Craig and Graeme Turner who are trying to put together a consortium to raise around $40 million to recapitalise the company.
"This information was advised to Godfrey Hirst and the Turners with a request for an immediate response and with an invitation to make such an offer to the company by 5pm Thursday September 7," Feltex said.
"Godfrey Hirst has confirmed that it will not be submitting an offer. The Turners have advised that they will make their offer by the stipulated deadline.
"The ANZ Bank has also advised the company that it will not permit any further drawdown against the company's facilities for the remainder of this week."
ANZ said it the position would be reviewed on Friday.
Feltex said it was able to make payments from its cash balances "but this means that payments to some suppliers may be deferred".
It said the pressure the company was experiencing related to resolving the debt levels of the company and did not reflect on the current trading performance which is strong.
- NZPA
