MandrakeSoft Files for Bankruptcy
Paris-based Linux distributor says the company is still on track for an April release of Mandrake Linux version 9.1.Linux distributor MandrakeSoft S.A. this week filed for "declaration de cessation des paiements," the French equivalent to American Chapter 11 reorganization. MandrakeSoft, which is headquartered in Paris but has operations in the United States and Canada, said the reorganization filing, made on January 13, 2003, was due to growing liabilities following a series of quarterly losses. In late December the company issued a plea for cash, saying it had a large short-term cash issue and asking people to buy products, MandrakeClub memberships or company stock. That followed a similar request last March. "This reorganization of liabilities enables MandrakeSoft to continue its current operations, which are showing increases in revenue and significant decreases in expenses. MandrakeSofts strategic partners are supporting the company in this process, and the MandrakeSoft team is focused on continuing to deliver high quality services and products to its customers," the company said in a statement.
"Following this filing and with the support of the court via a court-appointed Administrator, MandrakeSoft will be protected from its creditors, renegotiate its liabilities and prepare a continuation plan to be approved by the French Court in the coming months," it said.