LUXEMBOURG -- Elcoteq's long spiral into bankruptcy is complete. The electronics manufacturing services company filed yesterday after last-ditch efforts to convince its bankers for more time fell through.

The contract assembler, which as recently as 2008 was among the six largest EMS companies in the world, saw its fortunes rise and fall with its largest customers Nokia and Ericsson.

It filed for bankruptcy in Luxembourg after months-long discussions with its major revolving credit facility lenders and key customers failed to result in a solution.

The lenders, led by Danske Bank, froze Elcoteq's accounts earlier this year, preventing the company from paying for materials, and rejected a recovery plan proposed by Elcoteq and its major customers. Approximately 15% of the company's original 230 million euros revolving credit facility remains outstanding, Elcoteq said.

With the filing, Elcoteq becomes the largest EMS company ever to file for bankruptcy. Its sales topped one billion euros last year. It becomes the second company listed in the CIRCUITS ASSEMBLY Top 50 to file in 2011 as well, joining SMT Holdings.

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