Xeikon plans to borrow a further 28.6m ($40m) to overcome the lean period caused by the absence of orders from Xerox and the troubled introduction of its CSP 320 D.


Records at the US Securities and Exchange Commission show that Xeikon had used over 17m of an agreed 21.4m credit facility at the end of March.


"Our revenue and credit lines are currently insufficient," said a company statement, "and we expect that they will be insufficient to meet our cash needs for the next 12 months."


The new credit arrangement is subject to approval by shareholders, who will meet in the third quarter.


"Until the fourth quarter of last year, a significant amount of Xeikons revenue was through Xerox, but that stopped. Weve had a number of difficult projects but are still hopeful that well return to profitability by the fourth quarter of 2001," said Xeikon chief financial officer Gerrit Keyaerts.


He added that Xeikon had experienced difficulties in integrating the acquisitions of Nipson and Agfas digital printing division.


"The loan is necessary to finance the recent losses and high working capital. It is also needed for our bank loan for the Nipson acquisition," said Keyaerts.


Last year Xeikon recorded a net loss of 16.9m after revenues dropped by 14% to 119.3m. In Q1 this year revenues were down 17% to 23.5m and it made a loss of 7.7m. It expects to be able to ship the CSP 320 D by September.


Xeikons share price fell to an all-time low of $1.61.


Story by John Davies