Finnish electronics company Elcoteq SE unveiled moves to stabilise its finances alongside a steep fourth-quarter loss, and said equity stake talks with Indian group Videocon had ended.
Elcoteq, struggling to make a profit in an industry offering thin margins and dominated by larger rivals, also said on Wednesday two of its founders would leave the board.
The company said it had agreed with lenders to extend a €100 million ($135 million) revolving credit facility by 14 months to end-June 2011, and also planned a rights issue later this year.
Elcoteq said it had ended talks with Videocon on the latter taking a major stake in it, saying this was not necessary after moves made by the company in January to restructure debt.
"The extension of the revolving credit facility is an important step in the overall financial stabilization of the company," the company said.
Elcoteq is to merge vote-heavy K-series shares into the publicly traded A-series, and two of its founders -- Antti Piippo and Henry Sjoman -- will leave the board.
The moves were announced as the company reported a fourth-quarter operating loss of € €23.4 million, deeper than a year earlier.
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