Cash-strapped garment manufacturer PT Great River International said on Monday it will undertake a debt buyback program as it looks to slash its huge debts.

The company, which owes around $172.5 million, said it would fund the program through $26m of financing. Its previous plan was scrapped last week amid spiralling wage costs and plunging orders.

Earlier this month, Citibank filed a bankruptcy petition against the company over a $2m debt. Great River was one of scores of companies hit hard by the Asian financial crisis of the late 90s.