RealTime IT News

MandrakeSoft Files for Bankruptcy

Reeling from continued losses over past quarters, France-based MandrakeSoft, maker of the Linux-Mandrake Linux distribution, announced Wednesday that it filed for "declaration de cessation des paiements," similar to a U.S. Chapter 11 reorganization, on Jan. 13.

The company with U.S. offices in Altadena, Calif. said the reorganization of its liabilities will allow it to continue its current operations. The company also noted that its revenues are increasing and it has experienced "significant decreases in expenses."

MandrakeSoft said its strategic partners are supporting the filing, which will allow the company, with the support of a court-appointed administrator, to be protected from its creditors and renegotiate its liabilities. It will prepare a continuation plan for approval by the French Court in the next few months.

MandrakeSoft said Version 9.1 of Linux-Mandrake is still on schedule for release in April.