Despite the bankruptcy of the Luxembourg-registered and Helsinki-listed parent Elcoteq SE, Elcoteq Tallinn continues to operate while waiting to be sold to a new owner, writes news2biz.
Elcoteq SE’s creditors declined to allocate new loans in June, causing the company liquidity problems, which eventually led to the bankruptcy of Elcoteq’s three Finnish plants in August, and the parent’s bankruptcy.
In the process, several head managers have left the company during the crisis. According to Elcoteq’s lawyer in Helsinki: “Actually it is hard to determine now correctly, who is in position to give you any comments.”
Nevertheless, the future looks not so dim for the Estonian unit, after all. The CEO of Elcoteq Tallinn Jan Kotka says that the unit is profitable, continues to work and fulfill the customers’ orders while waiting to be sold as an asset by Elcoteq SE’s receivers.
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Filed under: Foreign investment
