Beleaguered Siu-Fung Ceramics says it is negotiating with one of its bankers to secure interim working capital to ease its dire cash flow problems. Mired in debts of $3.8 billion, Siu-Fung said it had continued to experience serious cash flow problems brought about primarily by its German subsidiaries, the NHD group of companies. The subsidiaries, comprising Netzsch, Heimsoth and Dubois which it acquired in the past few years, have been declared bankrupt following reports by German court-appointed sequesters. To ease the company's severe cash flow strain, it is negotiating with one of its lenders for an interim working capital facility. 'Although the board is confident that such a facility can be arranged no agreement has yet been concluded on any interim facility,' Siu-Fung said. Discussions continued with its principal bankers on getting a standstill arrangement on outstanding debts. Siu-Fung confirmed that it was talking to various parties 'who have expressed interest in investing in the group and/or acquiring certain of the group's businesses'. Siu-Fung said that the discussions were at a preliminary stage. American Standard and Japan-based tile maker Toto have expressed interest in acquiring some of Siu-Fung's joint ventures in China. Locally listed ceramic group Interform has indicated its interest in Siu-Fung's equipment. The company's shares have been suspended since October 28.