divine Facing Divestitures and Chapter 11

Feb 21, 2003

divine, inc. has announced that its efforts to minimize operating costs and liabilities have been unsuccessful and it has enlisted Broadview International LLC to explore options for further reducing expenses. divine is not ruling out asset divestitures, comparable transactions, and the filing of Chapter 11 of the United States Bankruptcy Code and is poised to sell several businesses or assets. This news comes less than one month after divine announced the sale of RoweCom, a subsidiary subscription management business, to EBSCO. At the end of January, RoweCom filed for bankruptcy and announced a 14-count lawsuit against divine, alleging that divine mishandled over $73.7 million in RoweCom funds.