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.

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