Elektrim, one of Poland's biggest companies, has filed for bankruptcy, the latest victim of the collapse in investor enthusiasm for the telecoms sector.

Elektrim, a telecoms-to-utilities conglomerate, was once wooed by international phone firms eager to break into the East European market.

It filed for bankruptcy in Warsaw after failing to win the support of its bondholders for its second debt restructuring within a year.

Elektrim's shares fell 44% on Friday before they were was suspended in mid-afternoon.

No buyers

Analysts say Elektrim's bankruptcy leaves a question mark over the future of PTC, a mobile phone firm with 42 million customers, one third of the Central European market.

PTC is majority owned by a joint venture of French media giant Vivendi Universal and Elektrim, while Deutsche Telekom owns the remaining 49% stake.

The firm has failed to find a buyer for its stake in PTC, which it had hoped to sell to meet its repayments.

Elektrim's collapse began last winter when it defaulted on a deadline to buy back 440m euros ($428m; �275m) of convertible bonds.

As well as being involved with the PTC joint venture, French media giant Vivendi Universal owned a 49% stake in Elektrim itself.

But, faced with its own debt problems, Vivendi sold the Elektrim stake in March to a group of investors led by US bank Citigroup.

Elektrim reached a debt restructuring deal with its bondholders in July 2002, but earlier this month it missed the first payment of 100m euros.

Flagship sinks

Analysts said the bankruptcy filing may give Elektrim the leverage it needs to negotiate with its creditors.

"The bankruptcy decision means that the Elektrim management has walked away from the main threat used by bondholders during debt restructuring talks," said Wlodek Giller, analyst at ERSTE Securities in Warsaw.

Elektrim was once one of Poland's flagship stocks, with a market capitalisation of $1.5bn.

With roots in the communist era, its holdings once spanned sectors ranging from electricity to trade and even yoghurt production.

In the last three years the firm has focused on the phone and power sectors, but costly purchases of telecoms and internet assets put a huge strain on its delicate finances.