Mandriva in the storm…

Mandriva team is at the moment in a very bad situation.

No real strategy and no decision for a while now, even if CEOs have changed several times these last months. Hervé Yahi, end of 2008 (now CS0), Stanislas Bois (was CFO before), then now Arnaud Laprévote.

Just want to recall that Mandriva is having financial problems for years. On January 13, 2003, the company management has declared a cessation of payments, which meant it was no longer able to meet its liabilities with available assets. After an observation period of several months a reorganization plan was decided by the Commercial Court and a court agent called « Commissioner for implementing the plan » has been nominated for ensuring that the time schedule of debts and improving the situation of the company is proceeding according to what had been arrested by the court. The plan is there to repay creditors and exit this situation. If the plan is executed smoothly, previous debts (the plan) will be completely cleared (and there are some deadlines to be set) and the company will leave definitely this process of insolvency. It will then continue its normal life. Management of Mandriva will have to find a way of managing more effectively than in the past to avoid repeating the problems. However, if the company fails to meet deadlines of the plan, the management of Mandriva will then re-declare the cessation of payments. The judge will then end the reorganization plan process and will open by the same one a bankrupt process, under Article L. 631-20-1 of the Commercial Code. This means stopping the activity of Mandriva, the immediate repayment of debt and termination of employees within 15 days for economic reasons … unless the continuation of the activity is decided to consider the sale of company to a third party, by adopting a transfer plan. In this case, the transfer of undertaking is not limited to any transfer of assets: it includes commitments to maintain employment (Article L. 642-1 para. 1 of the Commercial Code) and goes with the assignment of contracts needed to sustain the activity.

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