Beleaguered Swank International Manufacturing has suffered net losses amounting to $564.3 million for the year to December after making huge provisions for bad debts and inventories. The losses, which follow exceptional losses of $495.9 million, are a stark contrast to the $48.7 million profit earned the previous year. In 1995, exceptional losses were only $4.1 million. The optical product manufacturer has been suspended since March amid an investigation by KPMG Peat Marwick and Deloitte Touche Tohmatsu into allegations made in anonymous letters to the stock exchange concerning 'improprieties' in sales to three other companies. Last night, Swank - with debts of $960 million - said its bankers and creditors had reached a standstill agreement, meaning it would not have to repay its loans before December 31, 1997. Note-holders have also agreed to extend the deadline for repayment of notes on issue to May 20, 1998, after adjusting the annual interest rate to 15.98 per cent from May 20, 1997. The terms of the formal standstill agreement, which had also involved a search for new investors to inject fresh capital, were still being finalised, the company said. In April, Swank said an investment company owned by former United States Treasury Secretary William Simon could take control of its parent as part of a restructuring programme. Last night Swank said it was waiting for KPMG Peat Marwick's accounting reports before deciding if more large provisions would be needed to cover account receivables in the company's optical trading business. It ceased trading optical products in March this year. To reduce its burden, the company said it had shut its distribution company in France, Bk Optic, as well as similar businesses in Singapore and Taiwan. Its manufacturing operations on the mainland would also be scaled down. Swank said last year's sales of its sun-glasses, optical frames and glasses were about the same as in 1995. Turnover for the year was $778.26 million, slightly down from $785.3 million in 1995, while borrowing costs hit $71.16 million.