DSB Bank NV has until Monday morning 0700 GMT to work out a takeover deal with a U.S. candidate and avoid bankruptcy, the owner and chief executive of the shuttered Dutch lending bank, Dirk Scheringa, said Friday.

After a four-and-a-half hour session with the Amsterdam court dealing with the case, Scheringa said that the company has been granted another delay to work out a takeover plan with a prospective U.S. buyer.

The court also confirmed the extended deadline.

The court will decide on Monday morning whether the takeover plan is sound enough for DSB Bank to avoid bankruptcy.

-By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com