Tefron has agreed to send its lenders a business plan for the year 2010 before the end of the year in order to continue to operate under its current credit lines.

According to a statement the company estimates that in the event that the banks do not approve the business plan and cancel all company's credit lines, it will jeopardise the continuance of the company's activities.

It follows a meeting with the representatives of its three bank lenders, Bank Leumi Le-Israel, Discount Bank Le-Israel and Bank Hapoalim.

Tefron, a producer of seamless intimate apparel active wear, said the meeting was held in response to non-written notices that the company's chairman of the board and its chief financial officer received from the banks "in which the Banks stated their decision to terminate the Company's utilisation of its credit line".

As of 30 September  2009, the total outstanding credit utilised by the company by the Banks is approximately $29m. The company's capital as for such day was approximately $51m. It said this credit was secured by a floating charge over all company's assets and also a commitment of the company to create fixed charges over the company's machines.