Cadbury Schweppes has delayed the sale process for its US drinks business due to the current "extreme volatility" of the debt markets.

The UK-based company said today (27 July) that it has decided to extend the sale timetable to "allow bidders to complete their proposals against a more stable debt financing market." No date was given for the new deadline however, with Cadbury Schweppes declining to give further details when contacted by just-drinks.

Cadbury Schweppes looked to calm rumours that it would have to abandon the multi-billion pound sale, however, by confirming that "interest in the business remains strong".

Last month, the UK-based company confirmed that a sale of its US drinks business appeared the most likely plan of action in the coming months. Coca-Cola Co. followed the announcement by saying it was interested in acquiring Cadbury Schweppes' iced tea line Snapple.

Cadbury Schweppes has maintained its silence amid recent rumours suggesting that a front runner has already surfaced for the unit. Recent reports in Europe have suggested that a joint bid by private equity company Blackstone Group, along with Kohlberg Kravis Roberts and Lion Capital, looks to be heading the race for the drinks division.

Cadbury Schweppes' interim results for the six months to 30 June will be announced next week.