Logica extends banking provisions

(By Richard Holway) I was pleased to see that Logica has extended €500 million of banking facilities that were due to expire in 2010 to dates between 2011 and 2013. Rumours about this had been hanging over the company ever since the latest credit crunch arrived. Of course, in 'normal times' renegotiating such a credit line so early would have been as unnecessary as its early announcement to the Stock Exchange. We do indeed live in really strange times.

However welcome this news was, doubts still linger over how well Logica can ride an IT spending downturn. The Tempus article in The Times on Friday - Logica not the best solution as high levels of debt emerge - was hardly a ringing endorsement.