Dallas, Texas 06/25/2015 (Financialstrend) – InterCloud Systems Inc. (NASDAQ:ICLD), the modern day information technology and network solutions company, has announced that it has now relieved itself of the $11.6 million of liabilities this year. According to the press release, the balance sheet of the company will no longer feature this liability.
The $11.6 Million Liability:
InterCloud Systems Inc. (NASDAQ:ICLD) has been known for providing cloud based services to the enterprise market. The professional services of the company are related to the end to end informational technologies aimed at enterprises. The cloud services offered by the company include SaaS, PaaS, IaaS along with professional consulting and data solutions. InterCloud Systems Inc (NASDAQ:ICLD) also offers maintenance services for its customers.
In December 2013, the company registered a debenture worth $11.6 million on its balance sheet. Since then, the debenture has cost the company in terms of interest. It has now been paid in full. And from now on it will no longer appear on the balance sheet of the company.
The Effect of This Recent Change
According to Mark Munro, the CEO of InterCloud Systems Inc. (NASDAQ:ICLD), the payment of the debenture in full is a very good thing for the company. He termed the elimination of this debenture as “important.” This elimination lowers the monthly principal and interest payments of the company by more than $400,000. He regards this as an important milestone and further adds that this will allow the company to have more working capital that can help in the growth of business.
It is yet to be seen how this elimination of liability affects the operation of the company. But one sure should not tie their hopes on a mere elimination of debenture for a sign of success. The company might benefit by focusing more on its assets.