Beleaguered marine electronics manufacturer Raymarine announced on Friday that it has entered into exclusive discussions with a single party over the possible sale of the business. The company also confirmed that it is no longer in talks with US communication and navigation specialist Garmin.

It is thought that the proposed transaction will be structured by means of a sale of Raymarine Holdings Ltd, a wholly-owned subsidiary of Raymarine, and that the whole of Raymarine’s bank debt will be repaid on closing.

Raymarine’s other creditors, including employees and suppliers, will continue to be paid in the normal course. It is not anticipated that there will be any value remaining for ordinary shareholders.

“In light of this, Raymarine and its banking syndicate are in constructive discussions in relation to an extension to the Raymarine group’s current banking facilities which expire on 31 March 2010,” says the company.

Raymarine, whose share price fell by 5.6 per cent to 5.3p on Friday’s close, recently admitted it was unable to meet its debt covenants, with stockbroker Panmure Gordon stopping research coverage of the stock. In 2007, prior to the economic downturn, the company’s stock had been riding at an all-time high of around 700p.

A further announcement is expected to be made in due course.