An award-winning bra company that owes the Bank of New Zealand $50,480 will not go bust.

In the High Court at Palmerston North yesterday, BNZ's lawyer Phillip Drummond said the matter had been settled and the bank would withdraw its application to liquidate Emkay Ltd.

Emkay no longer trades under Emkay Ltd; Emkay Girl Ltd is now in charge of the label, which specialises in making bras for bigger breasted women.

The two companies have shareholders in common.