It’s creative financing time for some tech shops. UTStarcom (UTSI) has reached a $75 million revolving credit agreement with Well Fargo using a portion of its accounts receivables and its inventory as security. The move to get collateralized financing isn’t exactly a sign of good times at the wireless tech shop.
Last month, the Alameda, Calif. Company posted a net loss of $195 million for 2007 and paid $289 million to holders of convertible notes due March 1.
UTStarcom shares fell 3% to $2.59 in after-hours trading Tuesday.