Global Technology (Glotec) today announced that it has completed its financial restructuring and consolidation process, which began in April 2003. The Group reached an agreement with its financiers to convert a substantial amount of debt into equity, and concluded a management buy-out agreement to sell Brolink.
Debt of approximately R46 million owed by the company will be converted into equity. This will be done by way of a partially underwritten rights offer at two cents per Glotec share.
Graeme Victor, Chief Executive Officer of Glotec, comments, "We have come to an agreement with our financiers which will restore the solvency of the Group and ensure its sustainability going forward. We greatly appreciate the support and commitment that our financiers have shown us. We believe this will be to the benefit of all stakeholders involved.
"As part of the restructuring process, management agreed that Brolink was no longer a core focus of the Group and subsequently, an agreement was reached allowing the current Brolink management to buy the company from Glotec. Looking ahead, based on our new stronger financial footing, we will continue to focus on growing the Group."
Global Technology provides business information solutions, including business performance management (BPM) and enterprise resource planning (ERP), to the South African market. The company provides these services through its two remaining divisions: Global Technology Business Intelligence (GBI), and Associated Computer Solutions (ACS).
For further information about Global Technology, visit www.glotec.com
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