The future of marine electronics group Raymarine (LON:RAY) was thrown into confusion this morning after rival firm Garmin pulled out of a provisional deal to buy the debt-laden company. However, Garmin said it was willing to talk to Raymarine’s banking syndicate about buying the company out of administration in a move that could still see Raymarine shareholders receive 17.5p per share.

Two weeks ago, Raymarine informed the market that Garmin had tabled a pre-conditional offer of 15p per share to buy its main operating company but noted that shareholders could expect a return of 17.5p. The business, which is laboring under debts that totaled £94.9m at the end of December 2009, is now in breach of its covenants and today said it was in urgent discussions with its banks to seek to resolve the situation. The banks have apparently informed the company that they are not willing to grant a further waiver at this time.

Garmin said that if it could do a deal with the banking syndicate the terms are likely to equate to approximately 17.5p per Raymarine share (before the costs associated with an administration) in addition to providing for the repayment of the Raymarine group's banking facilities. However, it said a deal would need to be completed today (14 May 2010).

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