Troubled speech recognition software firm Lernout & Hauspie may run out of cash before it can sell off its subsidiaries, despite the firm's claims to the contrary, analysts report.
As the company and shareholders meet today to discuss its future, reports are circulating that analysts have lost faith in the firm's ability to stay afloat.
Last week a decision by a commercial court in Belgium ruled that the company's restructuring plan did not hold water and would have to be reworked.
In a bid to rake in some cash, L&H either has to sell subsidiary units Dictaphone and Mendez, or create a new company and convince L&H creditors to take stock in it.
Bloomberg reported that after speaking with Philippe Bodson, chief executive of L&H, Bert Maes, an analyst at Delta Lloyd Securities in Antwerp, said: "The more I listen to him, the less I believe in it. We are just waiting for bankruptcy."
The company has until 18 September to present a watertight restructuring plan to the commercial court, or it will lose its protection from bankruptcy.
The founders of L&H, Jo Lernout and Pol Hauspie, remain in custody. They are awaiting trial on charges of fraud and stock manipulation.
The custody extension is the third in as many months, since the pair were arrested in March. The Belgian judge ruled that their release may "endanger" further investigations.
Gaston Bastiaens, another former senior executive of the company, whose home was stormed by US marshals last month, was extradited from the US this week and taken into custody in Belgium on similar charges.
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