backtop


Print

Guess what happens when you pick fights with giants?

The SCO Group Inc, greatly maligned due to an expensive and unsuccessful campaign of litigation against the Linux world, announced on Friday that they have filed for Chapter 11 bankruptcy protection. The announcement comes one month after a U.S. District court ruled that UNIX copyrights belonged to Novell, and not SCO.

In a letter sent out to SCO customers and partners, SCO president Darl McBride wrote, “This afternoon we took the extraordinary step of filing for Chapter 11 protection in U.S. Bankruptcy Court … this decision was not taken without extensive consultation with the board of directors, and many outside experts and legal counsel.”

SCO stated that it will continue “business as normal” and follow the lead of other companies that have emerged successfully from Chapter 11. Citing the cases of Delta Airlines, Texaco, Macy’s, and others, McBride wrote that SCO “intend[s] to do the same.”

A Chapter 11 bankruptcy protects a company’s assets while it undergoes internal restructuring. “[SCO] believes it is poised for rapid growth,” said McBride in a declaration (PDF) in the company’s initial petition.

The filing means that all of SCO’s other domestic lawsuits are put on hold, including a court session scheduled for Monday to determine how much of the licensing revenues it collected must go to Novell.

In its bankruptcy filings, SCO listed that it had liquid assets worth $14.8 million and $7.5 million of debt. Previously trading at over $3 on the NASDAQ in the past year, the company’s stock price closed at 38 cents a share last Friday.




"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)










botimage
Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki