HONG KONG -- SMT Holdings has received a measure of relief as the beleaguered EMS company entered a "standstill" agreement with a majority of its lenders.

The agreement buys SMT Holdings time to improve its finances, and comes at a critical period as the contract assembler has seen revenues plunge over the past several quarters.

During the standstill period, each participating bank agrees not to make demand (or further demand) or take any action against the company and its subsidiaries to recover outstanding debts, and SMT Holdings can obtain up to RMB110 million ($17.5 million) in additional credit facilities from Chinese banks.

The agreement runs through March 31.

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