Hoping to gain a new lease on life, Peregrine Systems
announced it received a $50 million loan and reached an agreement to sell
its supply-chain management business.
The embattled San Diego management software maker said it signed a loan and
security agreement with Foothill Capital Group, an administrative arm of
Ableco Finance. Under the terms of the deal, Peregrine said it would begin
repaying the principal in $1.5 million monthly payments beginning February
2003. The balance is payable at the end of 2003.
In another move to free up much needed cash, Peregrine said it sold off its
supply-chain business to Golden Gate Capital, a private equity firm. Its
supply chain management business includes assets from Harbinger Corp. and
Extricity Financial details of the transaction, which is slated to close
this month, were not disclosed.
An accounting storm swept up Peregrine in May, when CEO Steve Gardner and CFO
Matt Glass resigned after the company said its auditors might have found as
much as $100 million in overstated revenue during 2001 and 2002. The company
fired Arthur Andersen as its auditor in April, only to late dismiss its
replacement, KPMG, citing a potential conflict of interest with some of its
earlier dealings with KPMG’s consulting arm.
The company later disclosed that the Securities and Exchange Commission has
opened an investigation into its accounting practices.
Peregrine’s shares have plunged over 90 percent this year, leaving them
trading at $1.20 at yesterday’s close.