In its latest filing with the US Securities and Exchange Commission, Corel announced it could run out of cash in 90 days if its merger with Inprise/Borland doesn't go through and current financial troubles continue. This comes as a bad blow for the graphics company following last week's reports that it had purchased popular graphics tools from MetaCreations.
Corel recently posted a first-quarter loss of $12 million (about £8 million), and in its 10-Q quarterly financial filing of April 19, the company said it expected to post more losses over the next six months.
"If the proposed merger with Inprise does not occur, other sources of financing are not secured and/or Corel's operating results do not improve, a cash deficiency may occur within the next three months," the company's 10-Q statement read.
A former director of the company has filed suit trying to block the merger, calling it "unfair." On April 10, the two companies announced that the merger waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired.
Corel has been touting the merger with Inprise, saying that the new company, to be called Corel, would be "a Linux powerhouse," offering a single source for a range of productivity applications, development tools and professional services.