submit a 500 words paper on the topic Unisys Credit Problems.

Hi, need to submit a 500 words paper on the topic Unisys Credit Problems. Unisys Credit Problems due Unisys Credit Problems The scenario in which Unisys finds itself is one where it might be forced to fall short of providing its services to its main client, the U.S government. Unisys has been enjoying large lucrative contracts from the government to provide IT services. This is in danger since the company will soon find it difficult to raise the finance required to meet the same. This has been caused due to the economic meltdown which has caused instability in the value of bonds, letters of credit and foreign exchange derivatives. The amount in bonds that is in the market which Unisys has invested will contribute to a greater loss if the company were to use them to remain liquid and be able to fund its operations with the ultimate consequence being a rights issue to finance the deficit. This situation has forced the company to rethink its position on the revolving credit facility which it operates with various funding institutions to the tune of $275 million. The idea is not to renew it and avoid the escalating interests due to such. This presents the company with the challenge of how it will be able to finance its operations and come out of the financial crisis.

 

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