Creditors to sue Manzi after Nets goes belly-up

Jim Manzi, former CEO of Lotus, is being sued by the creditors? committee of the company he joined last year, which went bankrupt seven months after his appointment.

The creditors are attempting to prevent Manzi obtaining money from bankrupt firm Nets ahead of other creditors, because they argue he tried to shift the status of assets in the months before the firm?s demise to influence the order of creditors? claims.

The assets of Nets, which developed online commerce applications, were eventually bought by Perot Systems.

Manzi joined Nets after quitting Lotus in October 1995 only 99 days after the company was bought by IBM. At the time, sources said Manzi was unhappy at taking orders from IBM executives. He was believed to have made about $78 million from the sale of Lotus to IBM.

Manzi has to reply to the creditor committee?s suit by 21 September. He was unavailable for comment.