Retailer The Finish Line Inc and its bank UBS are planning to appeal a court ruling that their $1.5bn purchase of hat and footwear company Genesco must go ahead.

According to Associated Press, the two companies have filed documents in Nashville Chancery Court arguing that a successful appeal could make a separate lawsuit, due to take place in New York on 3 March, unnecessary.

UBS, which agreed to finance most of the buyout, wants to get out of the deal because it believes the merged company would become insolvent.

Also casting a shadow over the deal is the fact that Finish Line's commitment letter from UBS expires on 30 April, and it is likely to be hard to find other banks to finance the purchase after then.

However, a ruling in Nashville in December said the agreement should go ahead since Finish Line and UBS were aware of the state of the apparel industry when they embarked on the $54.50-per-share purchase.