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. CEO Jouni Hartikainen resigned in August.
Approximately 15% of the original €230m ($306 mln) revolving credit facility remains outstanding , it said.

Evertiq reports  that at the end of June 2011, the Group employed 6,847 people. The geographical distribution of the workforce: Europe 3,164, Asia-Pacific 1,703 and Americas 1,980. All regions saw a decline in staff numbers when compared to the respective period last year.

Jan Kotka, (right)  of Elcoteq Tallinn, is quoted in several regional news articles that the bankruptcyapplications of the Finnish Elcoteq subsidiaries - Elcoteq Finland, Elcoteq Lohja and Elcoteq Design Centre - as well as the controlled management of the parent company do not have a direct affect on the operations of he Estonia assembly unit.

The Tallinn assembly facility is claimed autonomous. Customers have assured continuous cooperation, but suppliers would now demand prepayment, he said