OFAKIM, ISRAEL – Flextronics said it would receive credit insurance to insure its $85 million contract with communications equipment maker ECI Telecom.

Recently, Flextronics Israel warned it would halt production here and fire its 600 local employees, when it struggled to obtain insurance for the contract.

The electronics manufacturer asked a government-owned insurance company to insure the contract, but the Ministry of Finance rejected the request because it of its high risk, according to published reports.

Efforts to save the deal have continued for weeks, and a few days ago, a government official arranged agreements in principle, say reports.