Elcoteq's subsidiary files for bankruptcy

Reuters News
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Posted: Sep 20, 2011 12:34 PM

HELSINKI (Reuters) - Elcoteq, the Finnish electronics manufacturer under insolvency proceedings, said on Tuesday it filed another subsidiary for bankruptcy.

The group that assembles cellphones and set-top boxes said Elcoteq Network S.A., which handled its material purchases and customer invoicing in Europe, was no longer able to continue its activities after lenders blocked its bank accounts.

The parent company said insolvency proceedings continued in Luxembourg.

Last month Elcoteq filed three subsidiaries for bankruptcy due to a lack of funding. Its chief executive resigned earlier in August.

Elcoteq's lenders have said the company has had time to refinance the bank facility, for which the maturity was extended twice.

Elcoteq published Tuesday's statement after the market closed.

(Reporting By Jussi Rosendahl; Editing by Jon Loades-Carter)