Baan lifts head out of troubled waters

Troubled Dutch software company Baan has raised $40.86m equity through a debt-for-equity exchange.

The company had been given three weeks by the Amsterdam stock exchange to reach an equity position with its shares that satisfy the Dutch AEX and its backers Fletcher International or face expulsion. To meet the conditions it is selling off shares to existing shareholders.

Baan offered a deal to its shareholders to exchange $1,000 cash for 160 ordinary shares at the reduced price of $6.25. Remaining bondholders will have an opportunity to convert notes on the same financial terms for a special period of 61 days. After this period the price will revert to its original price of $22 a share.