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Electronics Production |
Elcoteq SE files for bankruptcy
Elcoteq SE has today filed for bankruptcy in Luxembourg. During the last months, the company had entered into discussions with the revolving credit facility lenders as well as the company's key customers in an attempt to save the company.
Despite of the company's continuous cost reduction measures and thorough efforts to restructure the company's debt, Elcoteq was unfortunately not able to find a solution that would have been acceptable to the revolving credit facility lenders.
The proposal for a recovery plan set forth jointly by Elcoteq and its key customers was rejected by the lenders, who required the company's customers to waive their rights and increase their exposure instead.
Approximately 15% of the original 230 million euro revolving credit facility remains outstanding.
The lenders continued their enforcement actions against the company by freezing the company's bank accounts, by preventing the company's payment transactions as well as by preventing the accounts receivable to be paid to the company.
As a consequence, Elcoteq SE is no longer able to continue its operations and there are no longer any prerequisites for the company to continue the controlled management procedure in Luxembourg. Hence, the company was forced to file for bankruptcy.
