A domestic manufacturer, Feltex Carpets whose bank loans amounts 10 times more than its market value, is awaiting a rival proposal from Craig and Graeme Turner, owners of an Auckland-based bed maker.
Rival carpet maker Godfrey Hirst Australia negated, it would not submit an offer to pay $NZ142 million for Feltex's debt and assets.
However, Godfrey Hirst, a closely held manufacturer based in Geelong, Victoria, last month had agreed to buy Feltex's assets and repay $NZ128million of bank loans.
ANZ Bank is owed $NZ135 million by Feltex, as it breached the terms of its bank loans.
ANZ has disallowed the company to draw further loan facilities. Feltex anticipates its bank debt might rise to $NZ143 million this month as suppliers had sought faster payments and the payments to some suppliers might be deferred.
Feltex stock fell 3.3 percent to 8.8c at the 5pm market close in Wellington, reducing its market value to $NZ13 million, compared with its 2004 initial public offering price of $NZ1.70 a share.
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