administration?, page-6

'ISoft chief goes in hard with the apologies'

David Symons
December 1, 2010

AS THE annual meeting season draws to a close, the award for the most grovelling chairman's address looks set to go to debt-laden healthcare software company iSoft, whose shares have tumbled 90 per cent over the past year.

ISoft's recently installed chairman, Robert Moran, yesterday reserved a large chunk of his address to explain ''how and why we got it wrong''.

Moran said ''we were too slow to react to the changed economic environment'', ''we failed to achieve the growth levels'', and ''we are carrying too much debt for the level of trading''.

'I acknowledge on behalf of the board the distress that this has caused to all involved and the impact on our share price speaks for itself,'' said Moran, who is also managing director of iSoft's largest shareholder, Oceania Capital.

While iSoft is keeping its options open as to how balance-sheet issues might be tackled, the best outcome for shareholders would be a takeover offer. Back-of-the-envelope numbers suggest a deal pitched at five times earnings before interest, tax, depreciation and amortisation would bring in about 15c a share for long-suffering shareholders.

http://www.smh.com.au/business/isoft-chief-goes-in-hard-with-the-apologies-20101130-18ffm.html


About debt restructure:

'iSOFT Group Limited (ASX:ISF) Chairman and CEO Addresses at 2010 Annual General Meeting'

http://www.egoli.com.au/australia/isoft-group-limited-asxisf-chairman-and-ceo-addresses-at-2010-annual-general-meeting/