PLYMOUTH, MN -- Innovex this week entered into a mandate letter with Standard Chartered Bank (Hong Kong) Ltd. in relation to a possible restructuring of its capital structure and possible financing.

Under the mandate letter, the printed circuit board manufacturer has agreed to work exclusively with SCB for 90 days to restructure its capital structure. The restructuring could include SCB's purchase of all Innovex's outstanding bank debt -- approximately $55 million -- from Bank of Ayudhya and TMB Bank at a discount, and the injection of up to $10 million for working capital.

Innovex paid SCB $50,000 to date and will pay an additional $25,000 upon agreement of a term sheet and an additional $25,000 upon execution of definitive agreements.

 Innovex has been plagued by financial problems in recent years. Revenues dropped from $173 million in fiscal 2006 to $71 million in fiscal 2008, and were just $33 million for the first three quarters of fiscal 2009. The company has not yet published its fiscal fourth quarter 10-Q form, which covers the period ended Nov. 11.