Cash-strapped Austrim Nylex Ltd and its subsidiary Austrim National Radiators have had their shares placed in a trading halt.

The move comes as the textiles and auto parts group attempts to convince bankers to give it some breathing space over its crippling debts.

During the past few days, Austrim managing director Peter Crowley has been locked in talks with the company's bankers in a bid to finalise a standstill agreement over its $A418 million ($US205.24m) debt.

And last night he said he expected to be able to sign off on an agreement with the company's bankers by Friday's deadline.

"I'm fully confident that they will support us," he said amid speculation both Westpac and ANZ have agreed to back Austrim, with NAB still finalising its decision.

In the past year, Austrim's shares lost 90 per cent of their value, the group posted a $A269.2m ($US132.18m) full year loss, and it was forced to negotiate an initial standstill agreement until July 1 next year.

After writing down $A279m ($US136.99m), the company's net asset position was reduced to $A218.75m ($US107.41m), placing the company in breach of its bank covenants.

Following a string of Australian corporate collapses, concerns have been raised that Austrim may lose the support of its bankers which would force it into voluntary administration.


To view related research reports, please follow the links below:-

World Textile Fibers to 2003

World Textile Chemicals to 2004