Significant shareholder in software firm comes out of Chapter 11

A SIGNIFICANT shareholder in back office software supplier eg solutions has completed its financial restructuring in the United States that has seen it reduce its indebtedness by £220m.

Aspect has a 9.5% equity interest in eg as well as a representative on its board and the two companies have a strategic partnership and re-seller agreement in place.  

Dunston-based eg has maintained that Aspect’s problems were unlikely to impact its own earnings.

Aspect has now had its restructuring approved by the US Bankruptcy court, allowing it to emerge from Chapter 11 protection. The plans also include new secured financing and fresh convertible debt capital to facilitate growth.

The US company has said it has “continued to pay its general unsecured creditors in the ordinary course during these proceedings and any pre-petition balances accounted for in its records will be paid in full in cash”.