Latest Updates on Debt Restructure Under Chapter 11

Next Step

QL2 to exit Chapter 11 Bankruptcy by the end of August.

Completed

Friday, August 6, 2010 – U.S. Bankruptcy Court confirms the Joint Plan of Reorganization filed under the sponsorship of Hale Global.

Tuesday, May 25, 2010 – A Joint Plan of Reorganization under the continued sponsorship of Hale Global was filed with the Bankruptcy court.

Friday, April 9, 2010 – QL2 Software signed a definitive Purchase and Sale Agreement with DMEP Corporation d/b/a Hale Global pursuant to section 363(f) of the Bankruptcy Code.

Friday, March 5, 2010 – A creditor's motion to dismiss the Chapter 11 proceeding was denied.

Friday, January 29, 2010 – Today Chief Judge Karen Overstreet confirmed a final order for QL2 to continue operations pursuant to its proposed budget. All creditors' objections were denied and the company can now proceed to create a re-organization of its debt while continuing to provide service to its worldwide base of customers.

Friday, January 22, 2010 – All forms and interim (six month) budget submitted to the Court.

Tuesday, January 19, 2010 – Successful completion of second step in the process. Chief Judge Karen Overstreet signed the interim order to accept QL2 January budget as presented.

Friday, January 15, 2010 – Chief Judge Karen Overstreet presiding over QL2's case in the United States Bankruptcy Court for the Western District of Washington approved the first steps of QL2's debt reorganization process. QL2 continues business as usual during the proceedings.

Tuesday, January 12, 2010 – QL2 issues press release.

Monday, January 11, 2010 – QL2 files for debt restructure (Chapter 11) with United States Bankruptcy Court for the Western District of Washington. Business continues uninterrupted.