With net debt a little above $200 million, it will take some persuading for the banks to support iSoft's plans to restore profitability without requiring asset sales. Fortunately, iSoft has a stand-alone managed services business that should bring in $50-60 million if required. Meanwhile, talk that private equity is circling iSoft is unlikely to lead to a transaction in the near term. Although interest from sector-specialist funds in the US is to be expected, major shareholders including Oceania Capital Partners would never support a bid after the share price has fallen by more than 70 per cent in just six weeks. Instead, shareholders should buckle in for an attempt at an 18-month profit turnaround. Management reckons there is $50 million in costs to be taken out of the business, with a view to rebuilding EBITDA to $100 million in 2012.