The chairman of the University of California Board of Regents
plans to step down from his position as head of a troubled software
firm.
Regent John Moores will resign as chairman of San Diego-based
Peregrine Systems on Saturday, pending court approval of an
agreement reached with creditors toward the settlement of
Peregrine’s bankruptcy case. The deal is expected to be
approved today by a Delaware court.
Moores did not return phone calls for comment on Thursday.
Peregrine attorney Richard Pachulski said Moores had planned on
leaving as soon as the company began reorganizing.
“He knew that whoever was going to control the company
would want a new board of directors,” Pachulski said.
Peregrine, under investigation by the U.S. Justice Department
and Securities and Exchange Commission, filed for Chapter 11
bankruptcy last September after auditors found the company
overstated revenues by $250 million.
Moores himself has been named as a defendant in multiple
shareholders’ lawsuits.
Also in September, Peregrine filed suit against auditors Arthur
Anderson, holding them responsible for troubles leading to
bankruptcy.
Moores first left the chairmanship of Peregrine in 2000 after a
10-year stint, during which the firm emerged as a major player in
the software industry. He returned to help the company last May,
when accounting firm KPMG discovered revenue discrepancies after
Peregrine fired Arthur Anderson.
Peregrine’s CEO Gary Greenfield welcomed the pending
agreement as a move toward getting the company back on track.
“The agreement … represents a significant step toward
completing Peregrine’s reorganization and clears important
hurdles in developing a plan addressing the needs of all
Peregrine’s stakeholders,” said Greenfield in
statement.
Creditors wanted to oust Peregrine’s five-member board,
saying they were in top positions during 1999-2000, when alleged
fraud took place.
In the agreement, Greenfield and another executive appointed
this past Monday will remain on the board. Peregrine will also
submit audited financial records for the past three years by
today.
With reports from Daily Bruin wire services.