Linux Today: Linux News On Internet Time.

Two on MandrakeSoft's Financial Woes

Jan 15, 2003, 16:00 (2 Talkback[s])
(Other stories by Bruce Tober, Tina Gasperson)

The Register: MandrakeSoft Mulls Chapter 11 Style Escape, Says Email

"MandrakeSoft is looking at a Chapter 11-style bankruptcy, to solve its financial difficulties, according to a leaked email from one of its executives. The executive has declined to be interviewed by The Register.

"New MandrakeSoft CEO Francois Bancilhon says the liabilities total about €2 million, but that he's weighing all possible choices for resolving the problems. The leaked email, however, paints a different picture. It describes specific plans to go with either Chapter 11 or its French equivalent.

"The email, sent earlier this month, says going Chapter 11 would allow MandrakeSoft to renegotiate all liabilities and to clear out all other problems, because people could be sacked and contracts easily broken. Chapter 11 is a form of bankruptcy in the US in which companies try to reorganize. Management may continue to run the operations, although the bankruptcy court must approve all significant decisions..."

Complete Story

NewsForge: Mandrake: Rumors of our Imminent Demise are Just That

"Apparently there are tales going around that there will be no Mandrake 9.1--that one of the most user-friendly distros around is not going to be around much longer. Not surprising, what with all the recent pleas for cash coming from the direction of Paris.

"But it's just not so, says Gael Duval, one of the founders of Mandrake Linux, whose charge it is now to communicate with curious reporters. We'd heard tell of a memo floating around with former CEO Jacques Le Marois' name on it (he's still president). Duval doesn't confirm or deny the existence of the memo, which purportedly contains statements to the effect that Mandrake could file the French equivalent of a Chapter 11 in the near future..."

Complete Story

Related Stories: