The Paris-based vendor said in a statement on its website that it had been pushed into the move because of liabilities accumulated by MandrakeSoft through a series of quarterly losses. It said yesterday that the reorganization, enables MandrakeSoft to continue its current operations, which are showing increases in revenue and significant decreases in expenses. It said its partners were supporting it in the process.
It said version 9.0 of its product had been a success, and that it was focused on version 9.1, which would be released in April as scheduled. In the mean time, it said it would continue to negotiate with its creditors and put together a reorganization plan in the coming months.
Just before Christmas MandrakeSoft asked customers to help it raise cash by buying its products, joining its members club and investing in the company. At the time, it said it needed $4m to see it through to profitability this Spring. It said it had a commitment for 30% of this from an investor, but needed to raise another $2m, hence the appeal to customers.
Source: Computerwire
