MobilCom, the German mobile phone firm, staved off the prospect of insolvency after its lending banks agreed to extend the deadline for €4.7bn ($4.6bn) of debt - due to mature on Monday - until next month.

The company, which has been facing extinction because of its debt burden and a long-running dispute with partner France Télécom, unveiled a restructuring plan to employees on Friday that includes job cuts and cost savings.