Troubled textile giant Guilford Mills Inc - facing possible Chapter 11 bankruptcy - had its trading suspended by the New York Stock Exchange on Monday and told its shares will now be de-listed.

The NYSE said in a statement that the Greensboro-based firm had failed to meet its continued listing criteria concerning average global market capitalisation of $15 million and average closing price of $1 over a consecutive 30-day trading period.

It added that its application to the Securities and Exchange Commission to de-list Guilford Mills' shares depends on the completion of the necessary procedures, including a possible appeal by the company.

The company's shares closed at 26 cents on Monday after its plan to show it could meet the NYSE's continued listing standards was rejected. Guilford Mills owes around $270m and has until this Friday to show it can restructure that debt.

If it can't then it is almost certain to be forced to apply for Chapter 11 bankruptcy protection. The company posted an operating loss of $157.9m, or $8.33 a share, for 2001.