Wellington, New Zealand, July 3, 2006--Carpet-maker Feltex says its bankers won't take any action over breaches of its loan facilities, at least until late September, according to Newswire.co.nz.
Feltex's shares nose-dived a week ago after confirming it was talking to its bankers about breaches of "certain covenants" in its loans.
The company also revealed it was in talks with an unnamed New Zealand company - rumoured to be fishing and frozen foods business Talley's - to take a cornerstone shareholding.
In a market update on Monday, Feltex says it is still working on these capital-raising options.
It says its banking facilities will continue until the end of September, when its bank will formally review its position.
Shares were unchanged at 22c late this morning.
Feltex shares were priced at $1.70 apiece in its Initial Public Offering in 2004. This was followed by a series of profit downgrades last year.
