Electronics Production |
Elcoteq: "the future business outlook is very uncertain"
The revolving credit facility lenders have continued their enforcement actions against the Company and have, among other actions, blocked certain bank accounts of the Company and seized the payments of Elcoteq's customers in Europe and US.
Due to these actions, the future business outlook is very uncertain and the company is only partially able to control its business processes.
Elcoteq announced on 30 June, 2011 that it had signed a conditional, non-binding Term Sheet with Platinum Equity concerning a major equity and debt investment. The investment was dependent on, among other things, Elcoteq's current revolving credit facility lenders and the Company's other main lenders agreeing on restructuring of current debt. Platinum Equity has informed Elcoteq that it has terminated its evaluation of a potential investment in Elcoteq. According to Platinum Equity, it was no longer possible for them to structure the intended transaction within the context of the actions taken by the revolving credit facility lenders against Elcoteq.
Elcoteq will initiate discussions with other potential investor candidates and relies on continuous support from the Company's customers to keep the Company's operations running. Elcoteq will review and reconsider the prospects of continuing the controlled management process in Luxembourg together with the experts appointed by the court.
