Cadbury Schweppes has confirmed the sale process of its US drinks arm has been extended because of volatile global debt markets.

Reports yesterday had suggested the firm would be forced to delay or even abandon the sale after the banks handling the sale were forced to lower the amount of debt available for the deal.

In a statement released this morning, Cadbury Schweppes said: “The sale process for Americas Beverages is ongoing, and interest in the business remains strong.”

“However, the leveraged debt markets have experienced extreme volatility in recent days. As a result, a decision has been taken to extend the sale timetable to allow bidders to complete their proposals against a more stable debt financing market.”

Cadbury Schweppes announced in March this year that it was planning to separate its confectionery and Americas beverages businesses and confirmed last month that it would sell Americas beverages.