Mandriva May File For Bankruptcy on January 16

Commercial Linux maker, Mandriva, may soon be forced to close down its operations and file for bankruptcy, it has been revealed.

Just a few months back, the company launched Mandriva Linux 2011 and no one knew that the company was actually strapped. Dominic Loucougain, Mandriva CEO, in a letter to the shareholders on December 23 revealed that the company might be filing for bankruptcy if in case it doesn't manage to raise capital.

According to the letter, the company will file for bankruptcy on January 16th. On the letter Mandriva CEO mentioned, "I regret to inform you that none of the recapitalization schemes that were proposed at the meeting of shareholders on December 5 was accepted". The letter was published on the Mandriva Forum.

"Without a permanent funding solution for our company before January 16th at noon, I will declare bankruptcy," he added.

A meeting between the shareholders and Mandriva was held on 5th December, 2011 and there the shareholders were requested to cast their votes regarding various financial planning in order to increase the capital of this company. However, major shareholders like Occam Capital, who is holding 42 percent shares of Mandirva and also TownArea refused to back the financial plans, reported The H.