Mandriva facing bankruptcy?
According to a letter that Linux distributor Mandriva sent to its shareholders in December, it seems there is a high probability that that company will have to file for bankruptcy this month. Suggestions circulating in the Mandriva forums in November that everything was fine were contradicted at the end of December with the company apparently threatening to close the company. A letter sent to the shareholders by the Mandriva CEO, Dominic Loucougain, on 23 December 2011 was then published (page 1, page 2), confirming the risk to the company.
At a shareholders meeting on 5 December, the shareholders were asked to vote on several financing plans to increase the company's capital. LinLux, formerly known as Occam Capital and holder of 42 per cent of the shares, declined to support any of the plans. Among the rejected plans was one that saw the other major shareholder, TownArea Trading and Investments Limited, supply the needed capital alone. But TownArea also stated that if a solution was not found, it would not be able to continue funding Mandriva. The letter says that the company will file for bankruptcy on 16 January.
This is far from the first time the Linux distributor, originally founded as MandrakeSoft, has been acquainted with financial difficulty. In 2003 it filed for a declaration de cessation of paiements, similar to US creditor protection, in France. In 2010, the company was saved by a number of new investors. It was that and the laying off of a number of Mandriva developers which saw a community form around the creation of the Mandriva fork Mageia.