The Launceston timber company is due to advise the Australian Securities Exchange on March 22 of any progress in its discussions with banks over the restructuring of a $216 million debt.

FEA's stock has been suspended from trading since February 26, after it confirmed it had breached banking covenants.

While it could apply to the ASX for another extension to its suspension, financial analyst Tony Gray said that the banks would be wanting a decision soon.

"If the banks say they want the money on the 22nd and they haven't got it, then they are insolvent," Mr Gray said.

A State Government rescue package was not forthcoming, leaving the company to fight for private assistance and give security to its 200-plus employees.

In a bid to generate some cash revenue, FEA growers have this week been sent letters requiring them to pay insurance costs by March 31, three months ahead of schedule.

Owners of woodlots under FEA managed investment schemes were this week alerted to a change from insurance being paid in arrears to in advance.

Growers had been making payments in June each year but FEA has invoiced growers for the 12 months to September 30, payable by the end of the month.

Another invoice for the period October 1 2010-September 30, 2011 will be sent out in early May.

Mr Gray said that it made sense for FEA not to carry growers' insurance costs and the income injection would be handy if FEA was suffering a lockdown on cash expenditure as part of its covenants.