Libya's revolutionary leaders say that negotiations over a peaceful handover in the loyalist town of Bani Walid, 150km southeast of the capital Tripoli, have collapsed and fighters have surrounded the city.<br /><br />The NTC's ministry of defense spokesperson, Col. Ahmed Bani, spoke to Al Jazeera about the breakdown in the talks.<br /><br />He said that progress is being made and that the city would eventually succumb.