Peregrine Emerges From Bankruptcy

Peregrine Systems Thursday said it has emerged from bankruptcy under a reorganization plan that calls for a focused product line, a new board of directors and the implementation of a compliance program to focus on company-wide processes and procedures.

The reorganization plan, which provides full debt recovery for many of the software vendor's creditors, was approved by the U. S. Bankruptcy Court for the District of Delaware on July 18 and becomes effective today, according to a company statement.

"We are proud to be the first enterprise software company to reorganize successfully under Chapter 11 as a public entity," said Gary Greenfield, CEO of Peregrine, San Diego, Calif., in a statement.

Greenfiled credited the loyalty of Peregrine's customers and partners and the commitment of its employees for the turnaround.

As part of its reorganization, Peregrine named a new seven-member board of directors. The board is in the process of selecting a new compliance officer, according to the statement.

Going forward, Peregrine will focus on asset and service management software, Greenfield said.

Peregrine sold its Remedy business unit to BMC Software in November for $355 million.

Through its bankruptcy, Peregrine has continued to work with partners and serve its 3,500 customers, which include Bank of America, Circuit City, Enterprise Rent-A-Car and Panasonic.

The company has also released several product upgrades since voluntarily filing for Chapter 11 bankruptcy protection in September following the discovery of accounting irregularities.

Earlier this year, the company restated financial results for 11 quarters in fiscal years 2000 to 2002 and recently settled a civil action brought by the Securities and Exchange Commission.

The Department of Justice's investigation into the events leading up to the bankruptcy remains open, as do investigations by the DOJ and the SEC of individuals involved in the events, the statement said.

Several former Peregrine executives pleaded guilty to conspiracy and fraud charges in April.

The company is awaiting the issuance of a new symbol for its common stock from Nasdaq.