(Corrects in headline and paragraphs 1, 2 and 4 to make clear prosecutors are not dropping request for bankrupcty)
* Judges reserve judgement to unspecified date
* Rescue plan requires creditor, court approval
* Prosecutors have material for bankruptcy filing-source
(Recasts lead, adds source quotes)
MILAN, Oct 15 (Reuters) - Milan judges delayed their decision on whether debt-laden real estate company Risanamento should be declared bankrupt on Thursday, without setting a new date for the judgement.
Prosecutors have requested bankruptcy for Risanamento while its banks are looking to rescue the company, which has 3 billion euros ($4.48 billion) of debt, with a plan that needs court approval.
According to a legal source, the prosecutors office believes that documents it has are enough to allow it to proceed with a bankruptcy filing against Risanamento.
All the same, if the court rejects their request for bankruptcy, prosecutors will not take part in a possible court process to approve the plan that five major banks have prepared to help the company, the source said.
However, their position has always favoured bankruptcy and they could appeal any court decision.
Risanamento, burdened by debt and over-extension in big projects, became Italy's biggest casualty of a tumbling property market. Its mixed-use Santa Giulia development in suburban Milan is among key projects awaiting completion.
Court approval for the rescue plan is required under the type of bankruptcy rule being used by Risanamento and it also requires approval by 60 percent of creditors.
Bank creditors have already approved the plan. In a statement, Risanamento said the judges had reserved their judgement.
Earlier, the company's lawyers said no date has yet been set for the judgement, adding the two sides had not changed their relative positions, with prosecutors calling for Risanamento to be declared bankrupt and the company opposing this, calling for the request to be thrown out.
Milan prosecutors have argued that funds already given to Risanamento by its banks in a rescue plan demonstrate the company needs further injections of capital to survive.
Last week, the company's banks provided a further 76 million euros of funds in anticipation of tax credits and in addition to a 500 million euro restructuring plan agreed by the banks, including share and bond injections.
The banks supporting its rescue plan are Intesa Sanpaolo, UniCredit, Banca Monte dei Paschi di Siena, Banco Popolare and Banca Popolare di Milano. (Reporting by Claudia Cristoferi; Editing by Rupert Winchester) ($1=.6702 Euro)