A company statement issued Thursday confirmed that "debt settlement proceedings," initiated on February 17, were "unsuccessful" because "necessary financing needed to proceed with the debt negotiations has not been provided."

That means the company can't avoid bankruptcy proceedings, which in turn were initiated after employees failed to receive their salaries in January.

The statement noted that Think Nordic's board retains "full confidence" in the company's employees and in its potential, adding that "demand for both the Think Public (a mini-bus model) and Think Hydrogen is strong, and these are both environmentally friendly products that deserve a place in the market."

It nonetheless "has proven impossible to secure necessary financing to service the debt and cover the company's operational costs," wrote chief executive officer Christopher Neal.

Former managing director Bernd Winkler, who had high hopes for the Think Public, has left the company. Spokesman Michael Eimstad said employees weren't expected to show up for work this week.

Think Nordic operated from leased offices and a plant at Aurskog, northeast of Oslo. Eimstad said the company's assets consisted mostly of intellectual property at this point.

Owner Kam-Korp Microelectronics will have to cede control once a court-appointed bankruptcy administrator takes over.

"Kam-Korp had the will but not the way, I guess," Eimstad told Aftenposten.no. "The money just hasn't arrived as it should."