Feeds

L&H files for Chapter 11

'Very significant cash shortfall'

  • alert
  • submit to reddit

Remote control for virtualized desktops

Belgian software outfit Lernout & Hauspie today filed for Chapter 11 bankruptcy protection in the US.

The speech technology company, which also plans to file a similar petition under Belgian law, said it would continue operating and would reorganise its business in an effort to get back into the black. Today's move also affects its Dictaphone Corp unit.

L&H blamed the filing, made in the US Bankruptcy court in Wilmington, Delaware, partly on "a very significant cash shortfall" on the balance sheet of its Korean subsidiary.

"We have tried, without success, to reach an acceptable accommodation with our bank lenders," said John Duerden, L&H president and CEO in a statement. "After an intensive analysis of L&H's world-wide business operations and a careful assessment of its financial position, we concluded that a voluntary reorganization filing is both prudent and necessary to preserve and rebuild our valuable customer base and technology assets."

Earlier this week co-founder Pol Hauspie quit L&H's board following revelations that the company would have to revise the past two and a half years of its books due to accounting irregularities.

The company saw its share price peak at $72.50 in March but drop to below $7 this month before trading in the stock was suspended. It is also under investigation by the Securities and Exchange Commission. ®

Intelligent flash storage arrays

More from The Register

next story
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Microsoft: Your Linux Docker containers are now OURS to command
New tool lets admins wrangle Linux apps from Windows
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.