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HELSINKI, OCT 6 - Once an example of Finland's success in technology innovation, electronics manufacturer Elcoteq filed for bankruptcy on Thursday after failing to reverse a fall in sales and restructure its debt.
The assembler of cellphones and set-top boxes struggled after Nokia Oyj switched to cheaper Asian suppliers a few years ago.
It also worked for Research In Motion , LG Electronics and others, but was unable to replace the lost business.
Elcoteq had said in June that it would not be able to repay the remainder of a revolving credit facility, and entered talks with an outside investor.
On Thursday, Elcoteq said lenders, which include Danske Bank , froze its bank accounts and prevented payment transactions, forcing it to file for bankruptcy earlier in the day.
"Despite 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 company said. Chief Executive Jouni Hartikainen resigned in August.
Approximately 15 percent of the original 230 million euro ($306 mln) revolving credit facility remains outstanding , it said.
Trading in the company's shares was suspended earlier. ($1 = 0.751 Euros) (Reporting by Ritsuko Ando; Editing by Erica Billingham)
