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Mandrake Files For Bankruptcy/Reorganization In France

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Read it and weep my friends:

 

http://www.mandrakesoft.com/company/press/...esoft/news/2405

 

I'm not familiar with French insovency laws, but it's described as a Ch 11 style bankruptcy filing. Used to do a lot of Ch 11 work when I first got out of law school. The above press release makes it sound like a friendly bankruptcy, i.e. one done with the support of Mandrake's main(i.e. secured) creditors. They should have plenty of leverage with their creditors since the company has little value except as a going concern. If they fold, everyone will get stiffed so you may as well let them roll the dice. The only other way to get value out of the company from a creditor's point of view is to sell the entire company to some interested party(United Linux??). It's all very speculative, but I've got to beleive they've got some deals lined up, probably some handshake commitments for capital infusion once they screw all the unsecured creditors in the bankruptcy and get out from under their debt burden.

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Crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap, crap

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if 9.1 makes it out, i'm buying it from their website.

 

and joining mandrakeclub when i get my big paycheck tomorrow. it's the least i can do.

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They'd have to have a sterling silver review before I'd come back from Debian. I just moved the wife over last night and she was shocked at the lag time Mandrake had to the cleaner Debian boot up and speed. Personally I'd like them to succeed because their installer is the best and their setup tools are #1 but their service and distribution (as in shipping) channels need to be retooled. I dunno, my vote is still out. But in the States we've been seeing so many bankruptcies that are turning into death tolls (READ: KMart) this doesn't sound heartening. Thing is there's no mention on the home page or on Mandrake Forum but I see it on Slashdot.

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Guest anon

I see little to concern me, ( Im a shareholder ) or you. Read the text carefully:

 

MandrakeSoft's financial reorganization 2003-01-15

 

The liabilities accumulated by MandrakeSoft through a series of quarterly losses have prompted the company to file for "declaration de cessation des paiements". The filing, similar to the U.S. Chapter 11-Reorganization, took place on January 13, 2003.

 

This reorganization of liabilities enables MandrakeSoft to continue its current operations, which are showing increases in revenue and significant decreases in expenses. MandrakeSoft's strategic partners are supporting the company in this process and the MandrakeSoft team is focused on continuing to deliver high quality services and products to its customers.

 

Following this filing and with the support of the court via a court-appointed Administrator, MandrakeSoft will be protected from its creditors, renegotiate its liabilities and prepare a continuation plan to be approved by the French Court in the coming months.

 

Version 9.0 of the product was a success both technically and commercially and the company is now focused on Version 9.1 which will be announced as scheduled in April.

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Anon, no offense but isn't that what the link was for? And does it really need a new message linking back to this one? How many times have I heard newbs getting slammed for multi-posting? (Don't get your scruff up I'm not being caustic just being a mod and all....)

 

But problem with this is that they have to cease some kind of operations while restructuring. A french finanical person might want to clarify how this actually works. I see this as not quite the death knoll but a definite kink in an already damaged chain. I just wonder what kind of NEW investment they'll be able to get. Prob not much from the user community until they prove themselves as viable.

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Guest anon
Anon, no offense but isn't that what the link was for? And does it really need a new message linking back to this one? How many times have I heard newbs getting slammed for multi-posting? (Don't get your scruff up I'm not being caustic just being a mod and all....)

.

No offense taken, the reason I posted the full text, and a link back to this thread, is that many users seem to be in panic mode. Its my feeble attempt at trying to calm nerves, there's no reason to switch Distro's, there maybe a merger, or takeover, but this Distro will survive. IMHO.

As to your comment about " users being slammed for multi-posting " not sure what you mean by being "slammed " I always thought that the MODS were very polite and tolerent over posts. Please feel free to post any examples of MODS slamming users for multi-posting to me, or other mods, who will, I can assure you, act on them.

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In another post on this subject I suggested that no individual send money to Mandrake. The safest and most tangible way to offer support is to buy at your local retailer to indicate to them that there is a market for Mandrakesoft products and that they should continue to stock them. Until the status of the club is clarified and the store operation is properly organized you are risking your money going down the tubes.

 

Shareholders are also affected by this announcement since it is unclear what will happen to Mandrake stock when the warrants expire on January 31. (Trading has been suspended since the first warrant offer). If other eqivalent situations an example, the stock will plunge to pennies level.

 

Knowing that Mandrakesoft is aware of the loyalty of its customers, club members and other allies, I am sure that as this event unfolds, it will inform the community what effects this will have and how the community can best support them at this difficult time.

 

The most singular bright light in this situation is that we are seeing the actions of a knowledgable CEO being backed by an awakening board of directors.

 

Counterspy

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Guest anon
The most singular bright light in this situation is that we are seeing the actions of a knowledgable CEO being backed by an awakening board of directors.

Counterspy

 

Perfectly put as always, Counterspy. As I have said elsewhere, hopefully the new CEO can give the Mandrake board, the " kick up the ass " they have needed for quite some time.

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Guest arise

Yesterday I finally got my 9.0 DVD i preordered in August 2002 (!!), after writing numerous emails to some sales manager, tried twice to talk with them on the phone.....

 

Nothing of this (phone, email) seemed to work until i wrote him a nice little mail in which i threatened to sue. Cannot get more simpler than "you took my money more than 5 months ago, and did not deliver me the goods, nor do you bother to inform me about ANYTHING!".

 

Guess what, 2 days later i got my airbill #, and another 2 days later the package was at my door.

 

Sorry Mandrake, i am (still) a pissed customer, u won't be seeing another cent from me.....as far as bankruptcy goes: maybe Mr.Duval and his suit&tie board will learn from previous mistakes. Remember, DO NOT MESS WITH YOUR CUSTOMERS !

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I believe that, if the new CEO seems more business knowledgeable than the previous regime, I wiil opt to buy Mandrake from a retailer. The reason is that retailers can create demand better than Mandrake. If retailers see Mandrake selling, they will order more. Mandrake should focus their distribution (double meaning) upon the retail market, and then improve their customer service with the staff they have. I am not ready to jump ship; this is just a financial move that was predictable given the amaturish business practices of Mandrake. It is a smart move. If they focus correctly, the distro can survive.

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Sound similar to the "suspension of payments" option available to companies here. I would assume that the application of these types of laws are fairly universal.

 

Basically, Mandrakesoft would be allowed to stop making any payments of obligations except for operating expenses (salaries, raw materials...etc.), however this will be for a limited period of time during which they have to comeout with a plan on how they intend to repay their exicsting debt. This plan would have to be approved by the creditors. Should the creditors not approve a plan than it liquidation time.

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Sorry Anon, Got LNO on the brain. I bounce between here, LNO, DebianHelp and LinuxJR and sometimes forget where I'm at.

 

Myself, I'm not worried about the DISTRO going away. Even if the company goes under someone (GAEL????) WIll run with the source code and keep it going in some unofficial way, maybe like slackware.

 

But I did some checking and what they are doing is similar to chapter 11 in America and not cccs. CCCS in america can't actually sell off your assets like the administrator in the french regulation/law can do. That's the key. I want to see them succeed myself so I have a reliable distro to point other converts to since I trust Mandrake in that aspect (even if Debian is my main distro of choice now). But they do have to work on their service/support/distribution (as in shipping) channels if they are going to succeed.

 

Actually a buyout would worry me more. I'd hate to see the distro picked up by some company that doesn't know squat about doing Linux right and ruin or bury the distro.

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Sorry Anon, Got LNO on the brain. I bounce between here, LNO, DebianHelp and LinuxJR and sometimes forget where I'm at.

 

and i thought you were talking about the mods at the old board (they were evil :twisted:). :mystismiles:

 

but in all likelihood, i wish mdksoft pushes through.

 

ciao!

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