Polytec says has bank deal to avoid insolvency

VIENNA, April 30 (Reuters) - Indebted Austrian car parts maker Polytec (POLV.VI) said on Thursday it had struck a deal in principle with its creditor banks to stave off a looming insolvency.

The group, creaking under 345 million euros ($459 million) of net debt, part of which was taken on to buy German peer Peguform last year, said it would present details of the plan after approval by all parties.

"The goal in negotiations with the involved banks ... was to ensure the continuity of the Group without insolvency," Polytec said in a statement. "In intensive negotiations, an agreement that avoids insolvency has been achieved."

Shares in Polytec, which have dropped 83 percent since last September, rose after news of the agreement with the banks, trading up 11 percent at 1.99 euros by 1445 GMT.

Polytec's creditor banks are Raiffeisenlandesbank Oberoesterreich, Oberbank, Unicredit's (CRDI.MI) Bank Austria, Investkredit, and BAWAG. (Reporting by Boris Groendahl; Editing by David Cowell)