The Belgian courts have frozen all the assets of Belgian software vendor Lernout & Hauspie Speech Products.
The court also appointed three officials to control the company's finances. The measures were requested by L&H shareholders' representatives, Deminor International.
Christian van Buggenhout, Deminor's legal representative, said: "The assets were frozen to prevent the company from using parts as a security for loans or selling them off."
L&H is the parent company of Dictaphone and of Mac-friendly speech software developer, Dragon Systems.
The company applied for bankruptcy protection on December 1, but the request was rejected by the Belgian courts due to the nature of its financial irregularities.