Forge Group investors are preparing for more pain after the troubled engineering group announced its financiers had withdrawn their support.
Shares in Forge Group have been placed in a trading halt ahead of an expected announcement to the market.
"Forge Group has been advised that its financiers have withdrawn support for the company," the Perth-based firm said in a statement on Tuesday.
The move signals more financial problems for the mining services company and fuels speculation about an imminent takeover offer.
It comes less than a fortnight after Forge said it expects to post a full year loss of up to $25 million.
In December, Forge announced writedowns of $127 million associated with its Diamantina Power Station and West Angelas Power Station projects.
That announcement led to an 84 per cent share price fall in one day.
Forge spooked investors in mid-January with a writedown of up to $28 million on the West Angelas project, sparking another share price plunge.
Since November last year, the company's shares have fallen 78 per cent on bad financial news.
Forge Group, which is understood to hold debt with the ANZ Bank, has been on the market since last month.
Chief executive David Simpson previously has said Forge was working to close out its power station projects before the start of the next financial year.
Forge has also flagged a possible capital raising and recently appointed Euroz Securities as corporate advisers to manage approaches to the company from third parties.
The company's shares last traded at 91.5 cents.
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