[Sussex] Mandrake "sort-of" bankrupt

[Mark Harrison]

It should be noted that a "declaration de cessation de paiements" is
_NOT_ the same as a Bankruptcy.

The use of the work "backruptcy" by Slashdot is slightly misleading, and
notably does NOT appear in the Mandrake press release.

Chapter 11 is actually "Bankruptcy PROTECTION" - a special form of legal
status used to try to PREVENT a company actually going Bankrupt!

In Chapter 11, and debts incurred prior to the date of declaration are
automatically put on hold. Anyone claiming that they are owed payment
has to present a case to a Court-appointed administrator. They decide
whether some/all/none of the debt should be paid. What they are looking
for is the best way to keep the company solvent and long-term able to
discharge its obligations.

A key aspect, however, is that the company is allowed, nay encouraged,
to continue trading while in this state. By comparison, it is an offence
to trade while bankrupt, and can, inter alia, lead to the Directors'
being disbarred from ever holding Directorships again!

I've dealt with US suppliers going into Chapter 11 on behalf of several
clients. It's messy, but it's a lot better than them going into
bankruptcy.

Regards,

Mark Harrison


-----Original Message-----
From: Macdonald-Wallace, Matthew J [mailto:s0209208 at glos.ac.uk] 
Sent: 17 January 2003 12:27
To: Sussex (E-mail)
Subject: [Sussex] FW: [Gloucs] Mandrake bankrupt


Got this from the Gloucestershire LUG,

Cheers,

MAtt

-----Original Message-----
From: john mckeown [mailto:jmckeown at glos.ac.uk]
Sent: 16 January 2003 12:34
To: gloucs at mailman.lug.org.uk
Subject: [Gloucs] Mandrake bankrupt


Mandrake have filed for bankruptcy to defend
themselves against the continuing heavy drain
from penalty clauses incurred some years ago 
in E-Learning ventures before the dot.com crash

http://www.mandrakesoft.com/company/press/briefs?n=/mandrakesoft/news/24
05
http://slashdot.org/articles/03/01/15/1727240.shtml?tid=147

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