Troubled software company Lernout & Hauspie (L&H) yesterday had its restructuring hopes dashed by a commercial court in Belgium.
The voice recognition firm had been given until 10 September to come up with a recovery plan, extending its protection from bankruptcy until 30 September. But the court yesterday rejected the plan on the grounds that L&H was guilty of "wishful thinking".
The court added that "nowhere in the plan is it concretely stated how much the company is losing ... and what the restructuring costs will be". A new date of 18 September was set for L&H to return to court.
The 'shares for debt' plan, in which investors are given stock in a new company set up by L&H, was approved by creditors earlier in the month.
The company has been dogged by disaster since it filed for bankruptcy late last year.
Founders Jo Lernout and Pol Hauspie were arrested in April on charges of fraud and stock price manipulation, and the home of former chief Gaston Bastiaens was stormed by US marshals last month on similar suspicions.
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