New deal sees iSoft down, not out

Ailing healthcare IT provider, iSoft, has today announced a deal to restructure its debt facilities, as part of a plan aimed at clawing the company's bottom line back into the black.

Ailing healthcare IT provider, iSoft, has today announced a deal to restructure its debt facilities, as part of a plan aimed at clawing the company's bottom line back into the black.

In a market update issued to shareholders today, iSoft chairman Robert Moran said that "the reorganisation and extension of our debt facilities removes the short-term financial uncertainty that we have faced over the last few months and provides a stable platform for us to execute upon the next stages of our plan."

According to iSoft's acting chief executive officer (CEO), Andrea Fiumicelli, the plan to turn the business around includes trimming excess fat by "reducing procedural duplication and simplifying internal processes".

Fiumicelli said that he expects iSoft to enter 2012 in a stronger financial position as a result of these changes.

"The 2011 financial year will be a transitional year as iSoft proceeds through its reorganisation," the company said in its update.

Financial year 2009/10 saw iSoft post a $383 million loss, and cost the business its chief executive officer, Gary Cohen.

In its update to the market today, iSoft reported that Cohen had officially resigned from the board of directors after completing his executive responsibilities within the company.

"The board thanks Gary for his professionalism and assistance during the transmission period," Moran said.

It was also revealed earlier this month that over the next financial year iSoft plans to shed 800 staff — 17 per cent of its total workforce.

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