Mandrake Files For Bankruptcy
Posted: Sat Jan 18, 2003 4:01 am
http://news.com.com/2100-1001-980819.html
MandrakeSoft, the financially strapped creator of the Mandrake version of Linux, said Wednesday it filed for the French equivalent of bankruptcy protection from creditors.
In a statement on the company's Web site, the Paris-based company said its financial liabilities prompted it to file for "declaration de cessation des paiements," the French equivalent of Chapter 11 bankruptcy protection. The move allows the company to take court-overseen actions such as renegotiating its debt while continuing its operations.
MandrakeSoft last month issued a plea asking customers to boost the company's revenue by buying products and subscribing to Mandrake clubs. The company also has been creating products that expand into corporate markets.
Mandrake's revenue has been increasing and its expenses decreasing, but the company remains unprofitable thus far. The company's stock is publicly traded on an unregulated European market.
While the company is based in Paris, the largest fraction of its revenue comes from North American buyers. It competes with better-established Linux sellers such as Red Hat and SuSE.
Version 9.1 of Mandrake Linux software is expected in April, the company said.
MandrakeSoft, the financially strapped creator of the Mandrake version of Linux, said Wednesday it filed for the French equivalent of bankruptcy protection from creditors.
In a statement on the company's Web site, the Paris-based company said its financial liabilities prompted it to file for "declaration de cessation des paiements," the French equivalent of Chapter 11 bankruptcy protection. The move allows the company to take court-overseen actions such as renegotiating its debt while continuing its operations.
MandrakeSoft last month issued a plea asking customers to boost the company's revenue by buying products and subscribing to Mandrake clubs. The company also has been creating products that expand into corporate markets.
Mandrake's revenue has been increasing and its expenses decreasing, but the company remains unprofitable thus far. The company's stock is publicly traded on an unregulated European market.
While the company is based in Paris, the largest fraction of its revenue comes from North American buyers. It competes with better-established Linux sellers such as Red Hat and SuSE.
Version 9.1 of Mandrake Linux software is expected in April, the company said.