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Creditors likely to agree L&H business break-up

But the speech recognition bosses are still stuck in prison

By Suzanna Kerridge

Published: 5 June 2001 16:49 GMT

Speech recognition company Lernout & Hauspie is today expected to win permission from its creditors to start selling off assets and breaking up the business.

Phillippe Bodson, CEO at Lernout & Hauspie (L&H), said he is glad.

The company's main creditors, Belgian Banks Dexia, Fortis and KBC Bancassurance, along with Dresdner Deutsche, held a meeting in the Belgian town of Ieper to vote in the decision. The group of creditors currently holds $500m in debt for the ailing technology company.

However, Bodson still needs the approval of the local commercial court judge before his plans can be put into place.

L&H currently enjoys bankruptcy protection in the US and is fending off a barrage of lawsuits from angry shareholders.

The company lost an estimated $10m in shareholder value last year after a sales figure fraud was exposed.

Founders Jo Lernout and Pol Hauspie are currently in jail awaiting trial for fraud and stock manipulation.

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