MobilCom has once again escaped the threat of bankruptcy after its creditors agreed to allow the German mobile phone firm more time to search for a way out.

It is the fourth time that creditors - owed 4.7bn - euros have granted MobilCom reprieve on payment on the debts.

MobilCom now has until 15 November to find a solution to its cash crunch which arose after France Telecom, which owns 28.5% of Mobilcom, cut off funding earlier in October.

The threat of bankruptcy has been hanging over the company ever since.

Plans on hold

Among MobilCom's already announced measures are severe cost cutting efforts which will lead to the loss of 1,850 jobs from its 5,000 strong workforce.

But more is needed.

Specifically, France Telecom is expected to push for a long-term financing solution with a syndicate of banks, and if this is successful MobilCom may live on.

France Telecom and MobilCom's founder Gerhard Schmid clashed over the speed and cost of rolling out third generation fast mobile phone networks.

The company's preparations for third-generation mobile phone services have been frozen.