COGNOTEC, the developer of software for foreign exchange transactions, shed half its staff and is in talks with lenders to restructure its debts, according to newly filed accounts.

The Dublin-based company is in talks to find new equity investment, according to the accounts which were signed off by its directors on 16 December.

It said the difficulties were caused by the decision of its biggest customer to cancel a new product.

The directors said in the accounts they "believe adequate funding will be available" to the company and it can meet its loan commitments.

Cognotec, which was set up by chief executive Brian Maccaba more than a decade ago, posted a pre-tax loss of $3.9m (€2.7m) in the year to end November 2008, down a touch on the $4m it loss in the previous year. The company's losses have now exceeded $106m. It reduced its workforce from 91 to 45, cutting $1.3m from its wages bill.