Mandriva Bankruptcy Crisis Averted, For Now

Mandriva users have been anxiously awaiting word from corporate whether the first user-friendly distribution would be forced to cease operations. The decision, which has been postponed twice in the last week, has finally come down. Too bad it's really a "good news, bad news" situation.

Jean-Manuel Croset, Mandriva COO, today blogged that the bankruptcy has been averted for now thanks to the Paris Region Economic Development Agency. This agency appears to a consortium of business owners and consultants, tax and regulation experts, and investors who work to promote investment in France. Mandriva has become the recipient of their support which will buy the troubled company time to construct a Plan B.

Croset said the original issue with the "minor shareholder" could not be resolved. He continued with the good news, "Fortunately, the financial situation - far better than expected - allow us to search for a new way to solve the current issue until mid-February."

So, while the company will carry on with its daily grind, users are still in a bit of limbo waiting until mid-February for the worst-case scenario. However, like a critically ill person on life support - everyday they continue breathing brings higher hopes they'll someday recover.