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Lernout & Hauspie files for bankruptcy protection

Belgian high-tech firm Lernout & Hauspie (L&H) has filed a Chapter 11 petition for re-organisation protection under US bankruptcy regulations.

By Chris Holbrook

Published: 30 November 2000 12:02 GMT

A former darling of Europe's high tech industry, the speech recognition software developer is currently $489.6m in debt, running aground primarily through significant cash shortfalls on the balance sheet of its Korean subsidiary.

The company is still under investigation by the Securities and Exchange Commission for accounting irregularities and the bankruptcy filing is the latest chapter in the company's swift demise.

However, the US regulations governing the petition allow L&H to restructure and continue trading, in an attempt to drag itself back from the red.

In a statement released by the company, John Duerden, president and CEO of L&H, said: "We have tried, without success, to reach an acceptable accommodation with our bank lenders - voluntary reorganisation filing is both prudent and necessary to preserve and rebuild our valuable customer base and technology assets."

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