Clover Technologies, parent company of Clover Imaging, has made the news about its debt situation and the Wall Street Journal (subscription) now reported that Bank of America NA has stepped down as a loan agent to a group of lenders to Clover Technologies.
Clover has around $700 million (€624 million) of debt and is sat on about $150 million (€134 million) of cash. Until earlier this month the company was ticking over, then two sharp whammies came along that is about to burst the clover bubble.
On the imaging side, Clover is being bashed by HPs dealer programme to win back dealers selling reman products. The HP-Xerox tie-up is expected to impact Clover as they are currently a significant supplier to Xerox of HP products. On the smartphone side of the business as the Wall Street Journal (subscription) reported a substantial customer, AT&T, had “decided to fulfil [their] requirements for refurbished older units by purchasing them directly from the OEM.”
Wall Street Journal recently reported: “Bank of America NA has resigned as the loan agent to a group of Clover Technologies Group lenders to avoid getting embroiled in an expected debt restructuring, according to people familiar with the matter.”
This follows after Clover Technologies issued a statement denying any sales rumours and reassured its customers, saying: “Clover, in close coordination with its advisors, is evaluating strategic options to address its existing capital structure.”
