The boards of SMB and Avocet will meet on Sept. 8 to consider "all available options, including the potential filing of an insolvency petition by SMB", Avocet said in a statement.

SMB's financial and trade creditors could not agree among themselves on an extension of the agreement, the company said.

"Given the current status of discussions, it is unclear whether agreement on a restructuring of the balance sheet can be reached before SMB has exhausted all available sources of financing," the company said.

(Reporting by Rahul B in Bengaluru; editing by Jason Neely)