Corel: takeover necessary
Software maker Corel Corp., Ottawa, Ontario, Canada, says the takeover of the company by Vector Capital is necessary to prevent Corel from defaulting on loans. While it has money on hand to pay $15 million in principal, Corel says this would leave it short in working capital to support the business.
Yesterday, Corel made an amended filing with the Securities and Exchange Commission, in which Corel said its majority investor, Vector, is moving to acquire the 32 percent of shares it doesn’t already own.
“Vector believes that if it is going to commit new equity financing to the company using funds from its limited partners under present circumstances, it will need the operational and strategic control of the company that can only come with total ownership in order to safeguard that investment,” says Corel in the filing.
