By Justin Madubuko, 10 August 2001 16:04
NEWS Lernout & Hauspie (L&H) plans to turn its US Dictaphone unit into a separate company and offer shares to its creditors in an attempt to keep them at bay. The company is currently under bankruptcy protection, and together with its creditors, agreed to create the new company, which has yet to be named. L&H ran into financial difficulty last November after it borrowed $430m to acquire Dictaphone - a manufacturer of recorders mainly used by the medical profession. Its money troubles deepened when it acquired rival Dragon for $600m only months after closing the Dictaphone deal. Philippe Bodson, chief executive at L&H, is trying to sell off other units, such as its speech recognition unit, to help salvage the business.
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