The company also said it reached an agreement with the Securities and Exchange Commission to settle the regulators' investigation into the company and its dealings with other technology firms. One such partnershipwas PurchasePro's relationship with AOL Time Warner, through which AOL licensed and sold PurchasePro's business-to-business software.
PurchasePro did not provide the financial terms of the sale to Palo Alto, Calif.-based Perfect Commerce, which makes auction software. It said the sale had yet to be approved by the U.S bankruptcy court in Nevada.
PurchasePro said it would continue to operate during the reorganization process and that it had the option of obtaining up to $750,000 debtor in possession financing.
PurchasePro's shares closed at 22 cents on the Nasdaq on Thursday.