Belgian speech recognition giant Lernout & Hauspie (L&H), whose subsidiary company Dragon Systems is a leading supplier to the legal sector, has filed for bankruptcy, leaving a cloud of uncertainty hanging over the IT strategy of many firms.
The move last week to seek protection under Chapter 11 of the US Bankruptcy Code follows a history of financial problems and litigation at the company.
Daniel Hart, L&H’s general counsel, said the discovery of “a very significant cash shortfall on the balance sheet of the company’s Korean subsidiary” played a significant role in the decision to file
for bankruptcy.
