Schaeffler, which ran into financial trouble after taking a controlling stake in competitor Continental, is making progress in talks with banks about its debt structure, daily Handelsblatt reported on Thursday.

The newspaper didn't identify its sources, Dow Jones Newswires noted.

Handelsblatt said that a framework for the deal features a deferral of interest and redemption payments this year and next. In turn, lenders will be paid back all their loans, some of which had been at risk.

The newspaper added there were still some problems, including tax issues, but an agreement could be reached by mid-August.