Turners' talks with ANZ on Feltex rescue hit snag

Discussions between ANZ Bank and Auckland businessmen Craig and Graeme Turner to rescue Feltex Carpets from likely receivership appeared to have hit a snag yesterday.

On Wednesday, Feltex said "constructive discussions" were continuing with ANZ and the Turners and it was hoped that an announcement would by made yesterday.

But at the time of going to print last night there was no word on the outcome of the talks.

Feltex is now more than $135 million in debt.

The Turner brothers - part of the family behind the Sleepyhead bedding group and backed by a consortium of New Zealand businessmen - plan to subscribe to $40 million of convertible notes and underwrite a $11 million renounceable rights issue to existing shareholders, with each security priced at 10c.

The bid has the backing of an unnamed bank but still needs the support of ANZ while new loan arrangements are put in place.

Feltex, which did not return calls yesterday afternoon, has been granted a waiver until Monday by the NZX to disclose its annual result.

The result is expected to show a drop in earnings.