News

posted on 05 April 2008 17:28

Tape automation and data protection company Tandberg Data has completed its refinancing with a new share issue has gaining the company 150 million Norwegian kronor.

The money was need to fill a black hole in its finances after the previous management ran the company so badly that it fell into negative equity and faced bankruptcy. Reconstruction proposals were put together with an essential component being new financing.

The new CEO, Pat Clarke, and the new board chairman, Gudmundur Einarsson, now have the cash needed to run the company while they arrange for its reconstruction. The company's shareholders have given them the green light to sort out the mess and generate a sustainable and viable concern from the limping and half dead business that the previous management left behind.

Let's hope that an energised management can bring a sense of positive momentum to the company.

One positive sign is that distribution arrangements in India have been strengthened through Tandberg partnering StorIT Data Storage Solutions (StorIT). The aim is to boost sales revenue this year.

^{[Chris Mellor.]}