TCL declares European unit insolvent

TCL Multimedia Technology Holdings Ltd declared its European unit TTE Europe SAS insolvent on Thursday, bringing the Huizhou-based maker of consumer electronics one step closer to shedding its loss-making European operations.

TCL Multimedia, a part of the TCL Group, said in a statement on Friday that the France-based TTE Europe had failed to come to terms with creditors over outstanding claims despite "extensive" negotiations. The company was unable to repay its debts, and so, according to French law, it had to file for insolvency.

"(The decision) is a significant step towards (TCL Multimedia's) recovery and turnaround in the future," the company said in a statement.