DEBT-LADEN Mackay Sugar has bought itself more time, successfully holding off its bankers. In a circular to shareholders released yesterday, managing director Mark Day explained both Rabobank and National Australia Bank had extended the current loan facilities for one year to March 2, 2019.

It will allow the company to charge ahead with its recapitalisation process, which involves finding an investor willing to spend more than $150million for a controlling share of the business.

The business, which at last count owed $169million, recently announced it had been given a 12-month extension on the $50million it owed to bond holders.

That was on the condition that by 5pm Sydney time March 2 Mackay Sugar had secured an extension on its bank loans.

The latest development, which effectively holds off the banks and bond holders, carries a condition that the banks have to be satisfied with the progress of the company's recapitalisation plan.

This means that if the plan to secure an investor falls through, the banks could call in their debts.

CAMPBELL GELLIE