Struggling Banyan Systems Inc, the Westboro, Massachusetts network software company, has been thrown a $15m lifeline in the form of a credit facility from Foothill Capital Corp. The money, which replaced a $10m credit facility which expired in May, will be available to support Banyan’s capital needs and pursue opportunities for expansion. Banyan is in dire need of funds as its recenues have been falling rapidly and in May reported second quarter losses of $13.7m, including $9.7m restructuring charges (CI No 3,209). The company was caught out when its Vines Unix- based network operating system was overtaken by products such as Windows NT and Banyan has had to reinvent itself as a network services company.
