Fleet management software maker Peregrine Systems has filed for Chapter 11 bankruptcy protection and said it plans to file a $1 billion lawsuit today against its former auditor, Arthur Andersen LLP, for negligence, fraud and breaching its duties.
In documents filed with the U.S. Bankruptcy Court in Delaware, San Diego-based Peregrine, maker of the Transportation 5.0 and Fleet Management software suites, listed assets of $1.7 billion and liabilities of nearly $608 million.
Peregrine will be allowed to continue operating under Chapter 11, and its debts will be frozen until it comes up with a plan to repay or reduce them. The company said it is negotiating with bondholders and other creditors.
"We wanted to file so that we could move forward without having the distraction of our financial and legal issues," CEO Gary Greenfield said.
The company is being investigated by the U.S. Securities and Exchange Commission and by a congressional committee. Shareholders have filed dozens of lawsuits against the company alleging securities fraud.
Peregrine last month sold its transportation asset management business to Maximus Inc. and its FacilityCenter product line to Tririga Inc. In June, the company sold its supply-chain software division for $35 million to Golden Gate Capital LLC.