By | Paul Kunert 17th November 2011 15:32

Banks bung hard-up Acer £315m loan

Five-year deal to get back on its feet

Troubled Acer has penned a new financing deal to cover working capital requirements and pay off a previous loan it took out to acquire Gateway.

The firm has gone through a major reshuffle of management following a loss-making year in which sluggish consumer demand caught it by surprise and resulted in an inventory pile-up.

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The Taiwanese vendor said that it has inked a syndicated loan agreement of NT$15bn (£315m) with a group of banks including Citibank Taiwan, Taipei Fubon and Bank of Taiwan.

"The loan will be used to repay a previous syndicated loan arranged by Citibank in 2007, and will enhance the mid-to-long term operating capital of Acer," the PC maker said.

It added that the agreement will "facilitate Acer" for five years. ®