Brussels word is law for L&H

The Belgian court has extended Lernout & Hauspie Speech Products NV bankruptcy protection for nine months as two companies fight over the company.

As part of the Belgian bankruptcy court's approval, L&H must guarantee that part of its business remains in Belgium and that its Belgian employees keep their jobs if L&H sells part or all of the company.

L&H must also guarantee at least 80 per cent of the gross income from asset sales be reserved to pay off creditors, the court summary said.

The court has set 11 June 2002 as the date for the next hearing on the bankruptcy protection period.

The approval keeps alive chief executive Philippe Bodson's objective of trying to sell the company's businesses. Bodson has acknowledged two companies are interested, but said L&H has not yet received binding offers.

An L&H spokeswoman said the company will have an official statement sometime next week "after we can fully understand the details of the decision."

The court had rejected the company's first plan in June. It said it was "not concrete enough" and "excelled in vagueness and theoretical constructions based on wishful thinking."

L&H has been operating under bankruptcy protection in Belgium and the US since November 2000.