ACT Manufacturing Mulls Layoffs, Chapter 11

Act Manufacturing (NASDAQ:ACTM), a Hudson, Mass., technology contract manufacturer, has exhausted its credit line and may file for bankruptcy protection.

The company said a credit agreement waiver with lender Chase Manhattan Bank and others expired Dec. 14. No extension has been agreed upon, leaving ACT's North American operations with "very limited liquidity."

"The company is considering a number of actions, including additional layoffs at several location and the possibility of of seeking protection under the federal bankruptcy act, in order to preserve its assets and value," the company said in a statement issued this morning.

In addition to its Bay State headquarters, ACT has operations in California, Georgia, Massachusetts, Mississippi, France, Ireland, Mexico, Singapore, Taiwan and Thailand. The copmany supplies printed circuit boards and other components for large technology firms such as EMC (NYSE:EMC) and Lucent

ACT posted a loss in its last quarter, citing the sluggish economy. After its announcement, shares of ACTM plummeted 0.28, or 21 percent, to 1.03. In the last 52 weeks, the issue has ranged from 1.2 to 30.