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From Groklaw:

Darl McBride Out; SCO Looking to Sell "Non-Core Assets"

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ars technica says the litigation will continue:

In a statement issued by SCO's new leadership, the company indicates that it plans to continue its litigation efforts and will move forward with the appeals process. The company also says that it plans to continue supporting its UNIX products. This potentially indicates that SCO has given up on trying to unload its UnixWare assets, a plan that has fallen through several times now as various proposed deals have evaporated.
"These actions, while difficult, are essential to SCO becoming a more agile and efficient company, not just for this year, but for years to come," said Hunsaker in a statement. "This restructuring plan reinforces SCO's ability to continue to sell and support its products while servicing the needs of our customers and partners on a worldwide basis through the stabilization of our financial situation."

Sad when getting rid of you is deemed essential for a company's survival. But I doubt this is the end of the Cowboy. He has reportedly said that there could be a shareholder revolt and litigation against the Chapter 11 Trustee. And none of the above tells us what the folks who have backed SCO from day one will do. If you recall, in the Pelican Equity complaint, other defendants with McBride allegedly called him their puppet. So... who is the puppet master?

There is another allegation in footnote 2 on page 12 of the First Amended Complaint [PDF]:

² McBride met Norris while he was working for AIP. The conclusion of the venture to take control of SCO Group bore similarities to that of the stock loan business. Norris, McBride, and Brazell took the opportunity for themselves to the exclusion of Robbins. After Norris and Robbins established a joint venture to purchase SCO out of bankruptcy with McBride's assistance, Norris and Brazell excluded Robbins' company from that entity and replaced it with Brazell's company, Gulf Capital Partners, LLC. Not coincidentally, Bryan Cave also represented Gulf Capital Partners. In connection with that endeavor, McBride unlawfully made a $100,000 payment to Norris, which he obtained through a home equity loan that he bragged was fraudulent, to make up for fees that the bankruptcy judge had forbidden SCO to pay Norris.

Now, this is an allegation, not evidence. You can say whatever you want in a complaint, and it's only later in litigation that you find out who is telling the truth or who is in the right. Both McBride and Bryan Cave have filed motions to dismiss the complaint, which are pending. But while it's important to caution about not jumping to conclusions, the fact that such incendiary allegations are out there now in public could be at least part of what may be happening behind the scenes, I would imagine.

I find it hard, I guess, to understand the reasoning behind firing McBride and then continuing the litigation unless there is some other factor. Litigation is his best skill, in my view. But then, SCO never did take my advice. Think how much trouble they could have saved themselves, and the rest of us, if they only had.

P.S. SCO's litigation will eventually fail, in my view, because of the GPL. They released their Linux products under the GPL. It's the fundamental flaw that will sink that ship no matter what else they are able to do. I've been saying that since Groklaw began, and it's still my opinion.

Here's the SCO statement in full, attached to the 8K as Exhibit 99-1: