Normal Business Operations Continue
L-Soft Germany GmbH, L-Soft UK Ltd., L-Soft AB, L-Soft Sweden AB and L-Soft Services international, Inc. Are Not Included in Filing
Bethesda, MD (March 8, 2007) – L-Soft international, Inc. announced today that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code to help resolve a five-year legal dispute. Normal business operations and customer service are expected to continue. The other companies in the L-Soft group have no plans to file for Chapter 11 and will also continue to operate normally.
"In 2002, two mid-sized law firms teamed up to take on a contingency suit against L-Soft international, Inc.," said L-Soft CEO and founder Eric Thomas. "Believing the company to be much larger than it really is, they thought that I would be in a position to consider writing them a quick $10,106,045 settlement check just months after 9/11. Chapter 11 proceedings will provide a court-supervised framework through which we can resolve this conflict in a manner that is fair to both parties."
The dispute centers around a 1995 software distribution agreement. With the exception of the significant expenses stemming from this half-decade of litigation, L-Soft international's business position is healthy and profitable, making it a good candidate for Chapter 11 reorganization.
"Filing for Chapter 11 feels like finally hitting a forest track after five years of machete-swinging in the jungle," added Thomas. "Not only does the going get easier, you now have a clear sense of distance and direction."
"It is important to understand that Chapter 11 is the cure, not the disease," said Thomas. "The 'fear of hospitals' phenomenon often keeps companies out of Chapter 11 until it is too late. But the sooner you file, the more likely you are to make a prompt and successful recovery."
At this point, L-Soft is not discussing the litigation itself because the case is still pending. Additional information about L-Soft's Chapter 11 petition is available on the Internet at: www.lsoft.com/news/onward.asp. A detailed history of the company and of its products is available at www.lsoft.com/corporate/history.asp. General information about L-Soft and its LISTSERV product line is available at: www.lsoft.com.
L-Soft, which was incorporated in 1994, offers email list and opt-in email marketing software and hosting services for managing email newsletters, discussion groups and marketing campaigns. L-Soft's products serve more than 110 million list subscriptions. L-Soft celebrates the 21st anniversary of LISTSERV and the 5th anniversary of LISTSERV Maestro in 2007.
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