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Peregrine Systems Inc. announced today it found a buyer for its Supply Chain Enablement unit and signed a loan and security agreement.
Although its accounting remains in shambles and the company will have to restate three years of financial reports, Peregrine secured a $50 million loan with Foothill Capital Corp., an administrative agent for Ableco Finance LLC.
Under the terms of the agreement, Peregrine is obligated to repay the principal, starting in February 2003, with equal monthly payments of approximately $1.15 million. The balance of the loan is due December 31, 2003.
Peregrine shares fell 93 percent this year, to a low of $1.10 on May 7, according to Bloomberg.com.
The San Diego, Calif. company also entered into an agreement with Golden Gate Capital LLC to sell its SCE business, officials said. The sale is expected to close later this month.
Its not clear how much Golden Gate will pay for the supply chain business unit, which is a combination of Peregrines Harbinger Corp. and Extricity Inc. acquisitions.
eWEEK broke the story on February 28th that Peregrine would sell its SCE business unit to better focus on its Infrastructure Man-agement business – and shore up its finances.
In the midst of trying to sell that unit and refocus its energy on a new business strategy, Peregrine learned its independent auditors, Arthur Andersen, could not deliver on their audit because of internal problems over the Enron debacle.
In came KPMG.
Because of questions raised by KPMG of accounting impropriety that could amount to $100 million, the Securities and Exchange Commission in May opened an investigation and Peregrines chairman and CEO, and CFO resigned.
Peregrine announced on May 28th its board of directors fired KPMG.
An internal investigation conducted by Peregrine attorneys discovered that about $35 million of the questionable $100 million in transactions are with KPMG and KPMG Consulting, according to Peregrine officials.
Now Peregrine has hired PricewaterhouseCoopers LLP to continue, and hopefully complete, the investigation begun by KPMG.
In the meantime, Peregrine is searching for new independent auditors.
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