UPDATE 1-Rodriguez seeks safeguard in yachting crisis

* Seeks safeguard procedure Chapter 11 protection

* Shares suspended

PARIS, April 8 (Reuters) - French luxury yacht seller Rodriguez Group (RDGP.PA) has suspended its share trading on Wednesday after opting for a safeguard procedure in order to continue talks with banks over the repayment of debt.

"With several million euros of cash available, Rodriguez Group will continue its operations under normal conditions during the upcoming six-month renewable observation period," the group said in a statement.

The safeguard procedure is a French legal regime enabling a company to withhold the payment of its outstanding debts, while it seeks to restructure debts and continues to operate.

A spokesperson for Rodriguez Group was not immediately available for comment on Wednesday.

Shares in the Cannes-based group have been highly volatile since talks with banks over the restructuring of its syndicated debt were announced last December.

Rodriguez Group stock plunged almost 94 percent in 2008, but has gained 110.3 percent so far this year, giving the company a market value of about 36 million euros.

Leisure boat companies, which have been hit by the global economic crisis, are struggling as customers delay purchases, leaving them saddled with high operating costs and unsold yachts.

Smaller yacht maker Couach (YACHT.PA), with a market value of 29 million euros, applied for court protection from creditors on March 30, as it failed to secure a deal with banks over the restructuring of its debt.

Meanwhile, French boatmaker Beneteau (CHBE.PA) said last week it was in talks with staff about job cuts, as newspapers reported it could cut up to a fifth of its almost 4,000 shipyard workers after a 50 percent fall in its order book since January. (Reporting by Michel Rose; Editing by Andrew Macdonald)