Softchoice, one of the largest software and services solution providers in North America, received an extension on its debt repayment plan, giving it an additional three months to settle the loan.
A Toronto-based company, Softchoice is in the final stages of negotiating a deal in which it wouldn’t have to repay $45 million that was originally scheduled for repayment on Dec. 31. Under the new plan, Softchoice will have until March 31, 2009 to repay the loan.
The new repayment plan includes a new debt structure for the company that includes $120 million (Canadian) in an asset-backed line of credit and a new $25 million (Canadian) short-term loan.
"We believe that this new debt structure will provide the capacity and flexibility needed to support the Company's long term growth objectives" said Softchoice CFO Anne Brace in a statement.
Softchoice, a publicly traded company on the Toronto Stock Exchange, operates 45 offices in the U.S. and Canada, and employees nearly 1,000 people. In 2007, the company reported revenues of $777 million (U.S.), a 10.5 percent increase over the previous year.
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