Debt-ridden audio products maker Kosonic International has found a potential investor to assist its financial restructuring. The company's banks - which are owed about $330 million in outstanding loans - will extend their deferral of repayments to further assist the process. Kosonic chairman and founder, William Ko Kai-hing, yesterday said the company's debts were about $519 million. He said the investor was not connected to the company's directors, chief executive or substantial shareholders. However, it is believed that the potential investor will make an announcement by the end of this month. The company would not disclose the identity of the investor, who if satisfied with its review of the company, will set the final terms of the restructuring plan out in a binding agreement. No initial details about the plan, however, were available and the company did not say if it would result in the investor taking a majority stake in Kosonic. The extent of Kosonic's financial problems became apparent last October when its bankers began talking of a rescue package. Since then two potential investors have emerged and have expressed an interest in rescuing the company by providing interim funding to help it continue operating. The investors, however, pulled out from the rescue-plan discussions and no interim funding was finally provided. In June, the company announced net losses of about $28 million for the six months to March compared with a profit of $9.8 million in the previous corresponding period. Kosonic's turnover has plunged 63.5 per cent to $181.8 million. A spokesman for the company said operations were continuing at reduced levels due to working capital constraints. He did not comment on how long the banks had agreed to extend debt repayment deadlines.