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.