Wellington, New Zealand, September 20, 2006--Australian company Godfrey Hirst is reported to again be in talks about a rescue bid for troubled rival carpet maker Feltex, according to the New Zealand Herald.
On Monday Feltex revealed a $57.65 million annual loss, but news is still awaited about the company's future.
For nearly a two weeks Feltex's bank, the ANZ, and a consortium led by Graeme and Craig Turner of the Sleepyhead bed company have been in talks on a $51m rescue bid.
Previously Godfrey Hirst had made a $141.8m takeover offer but pulled it on September 6, saying it did not believe its bid--needing 75 per cent shareholder support--had a reasonable chance of success.
But today The Dominion Post newspaper said it understood talks between Godfrey Hirst and the ANZ took place late last week and again this week.
The ANZ, which turned off Feltex's credit lines on September 7 and is owed at least $135m, was now in the driver's seat.
Feltex spokesman John Walsh said Feltex was not in talks with Godfrey Hirst, and Godfrey Hirst and ANZ declined to comment.
Craig Turner said yesterday discussions with ANZ continued.
Meanwhile, Feltex is receiving regular updates from accounting firm Deloitte on its solvency as frustration continues to mount for the company's staff.
Judy Attenberger, national textile secretary at the National Distribution Union, which represents about 700 of Feltex's 890 New Zealand staff, said the continued uncertainty was "terrible."
