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SCO Group files for bankruptcy protection
CNet ^ | 9/14/07 | Stephen Shankland

Posted on 09/14/2007 2:48:44 PM PDT by Nick Danger

Three and a half years after launching a high-profile legal attack on Linux, The SCO Group has filed for Chapter 11 bankruptcy protection.

The Lindon, Utah-based company long has maintained that it had enough money to fight its costly lawsuits against IBM, Novell, Red Hat (which sued SCO proactively), AutoZone and DaimlerChrysler. But on Friday, a month after losing on a crucial legal ruling, the company admitted a grimmer picture.

"The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders and employees," the company said in a statement. Added Chief Executive Darl McBride, "We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business-critical operations."

Chapter 11 protects a company's assets from creditors during a reorganization.

IBM didn't comment, but Novell said it is evaluating its options. "U.S. bankruptcy law automatically stays the court case. We're assessing our options for how to pursue our interests," Novell said. A court case was scheduled to begin Monday to determine how much SCO owed Novell as a result of last month's ruling, according to Groklaw, a site that's closely monitored the case.

All of SCO's court cases now are on hold, a company representative said. SCO has a complicated history. It went public as Linux seller Caldera Systems, then acquired the Unix business from the Santa Cruz Operation and renamed itself The SCO Group. It then scrapped its Linux business and sued IBM and others, alleging that Big Blue violated its Unix contract by moving proprietary Unix technology into open-source Linux.

However, the company's legal case was dealt a crushing blow in August, when the federal judge overseeing its case, Dale Kimball, concluded "that Novell is the owner of the Unix and UnixWare copyrights."

In the meantime, SCO has been trying to enliven its ever-shrinking business, selling its UnixWare software, and to expand into the mobile-device software market.

In June, SCO reported a loss of $1.1 million for the quarter ended April 30 on revenue of $6 million, a decline from $7.1 million in the year-earlier quarter. Legal costs that quarter totaled $1.1 million, a major decrease from $3.8 million the year before.


TOPICS: News/Current Events
KEYWORDS: comesaround; goesaround; linux; novell; sco; unix
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Bwaaaaa ha ha
1 posted on 09/14/2007 2:48:45 PM PDT by Nick Danger
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To: Nick Danger; ShadowAce; Salo; rdb3

I just saw that on Google News....EXCELLENT!


2 posted on 09/14/2007 2:51:14 PM PDT by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
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To: Nick Danger
Last Trade:	0.37
Trade Time:	3:59PM ET
Change:	Down 0.28 (43.08%)
Prev Close:	0.65

Bwaaaa ha ha again!

3 posted on 09/14/2007 2:51:37 PM PDT by Nick Danger (www.wintersoldier.com)
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To: Nick Danger

AutoZone? DaimlerChrysler?...........Did they sue Home Depot too?...................


4 posted on 09/14/2007 2:51:37 PM PDT by Red Badger (ALL that CARBON in ALL that oil & coal was once in the atmospere. We're just putting it back!)
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To: Nick Danger

Game over.....


5 posted on 09/14/2007 2:51:42 PM PDT by knews_hound (In order to not be banned, I no longer discuss Politics here.)
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To: Nick Danger
ROFLOL!

So, have all the lawyers been paid? I hope not.

6 posted on 09/14/2007 2:52:48 PM PDT by TChris (Has anyone under Mitt Romney's leadership ever been worse off because he is Mormon?)
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To: Nick Danger
Link to Groklaw:

SCO Files For Chapter 11 Bankruptcy
Friday, September 14 2007 @ 03:29 PM EDT

*******************************EXCERPTS**************************

The text of the press release:

******************************************

The SCO Group Files Chapter 11 to Protect Assets as It
Addresses Potential Financial and Legal Challenges

Friday September 14, 3:21 pm ET

Reorganization ensures business as usual and that assets remain for
continued support of customers and channel partners

LINDON, Utah, Sept. 14 /PRNewswire-FirstCall/ -- The SCO Group, Inc. ("SCO") (Nasdaq: SCOX - News), a leading provider of UNIX® software technology and mobile services, today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees.

The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings. Subject to court approval, SCO and its subsidiaries will use the cash flow from their consolidated operations to meet their capital needs during the reorganization process.

"We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business critical operations," said Darl McBride, President and CEO, The SCO Group. "Chapter 11 reorganization provides the Company with an opportunity to protect its assets during this time while focusing on building our future plans."

The SCO Group has filed a series of first day motions in the Bankruptcy Court to ensure that it will not have any interruption in maintaining and honoring all of its commitments to its customers. The motions also address SCO's continued ability to pay its vendors, the retention of various professional advisors, and other matters.

7 posted on 09/14/2007 2:56:15 PM PDT by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
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To: Nick Danger

They used to be such a good little player...

Game over now...


8 posted on 09/14/2007 2:56:41 PM PDT by ejonesie22 (I don't use a sarcasm tag, it kills the effect...)
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To: Nick Danger

Couldn’t of happened to a nicer bunch of folks.


9 posted on 09/14/2007 2:56:42 PM PDT by Post-Neolithic (Money only makes Communists rich Communists)
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To: Nick Danger

Long awaited ROFLOL!!!!


10 posted on 09/14/2007 2:56:56 PM PDT by A. Morgan (Fred Thompson’s solid, he does not waffle. Fred 2008!)
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To: TChris

See the link at #7 for the list of creditors....some lawyers on the list....


11 posted on 09/14/2007 2:57:26 PM PDT by Ernest_at_the_Beach (No Burkas for my Grandaughters!)
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To: ShadowAce

Ping!


12 posted on 09/14/2007 2:59:42 PM PDT by Red Badger (ALL that CARBON in ALL that oil & coal was once in the atmospere. We're just putting it back!)
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To: Post-Neolithic

Did they ever produce a real product?............


13 posted on 09/14/2007 3:03:36 PM PDT by Red Badger (ALL that CARBON in ALL that oil & coal was once in the atmospere. We're just putting it back!)
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To: TChris
So, have all the lawyers been paid?

They got a lot of money up front, then switched to a more risk based fee structure, as I recall.

14 posted on 09/14/2007 3:07:59 PM PDT by PAR35
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To: Ernest_at_the_Beach
The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings.

So they plan to keep suing customers?

15 posted on 09/14/2007 3:09:43 PM PDT by PAR35
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To: Nick Danger

O.K., I’m pretty much in the dark about this outfit. What’s the story here and why is it a good thing that it’s filing for bankruptcy? Inquiring minds wanna know...!


16 posted on 09/14/2007 3:13:09 PM PDT by Virginia Ridgerunner ("Si vis pacem para bellum")
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To: Nick Danger

Couldn’t happen to a nicer bunch of scumbags.


17 posted on 09/14/2007 3:15:36 PM PDT by ikka
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To: Nick Danger
They were bled dry by ambulance-chasers!

Good....one more warning label I won't have to pay for......

18 posted on 09/14/2007 3:18:44 PM PDT by traditional1 ( Fred Thompson-The ONLY electable Republican Candidate)
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To: Virginia Ridgerunner

Search FR for SCO...

Basically a software “business” run by lawyers that took on more than they could chew - so to speak...


19 posted on 09/14/2007 3:22:45 PM PDT by DB
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To: Nick Danger

Good!

Now let’s hope that scummy company that sued RIM and just announced lawsuits against a bunch of other companies, even though their patents were voided, goes out of business!

Ed


20 posted on 09/14/2007 3:23:14 PM PDT by Sir_Ed
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