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SCO Group files for Chapter 11 bankruptcy (Reuters)

Reuters has a brief article stating that the SCO Group has filed for bankruptcy protection. It's a chapter 11 filing, meaning they want to reorganize and keep going. Update: here's the company's press release announcing the filing.

to post comments

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 14, 2007 20:13 UTC (Fri) by wildman27283 (guest, #18993) [Link] (1 responses)

I think this a sneaky way to try avoiding the latest court rulings. I really don't think they should be allowed to regroup, but rather sell out while they can.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 15, 2007 6:34 UTC (Sat) by csamuel (✭ supporter ✭, #2624) [Link]

They're even got a threatening statement to sue anyone who even tries to breach the automatic stay..

PLEASE TAKE FURTHER NOTICE that contempt proceedings may be initiated against any party who participates in any violation of the automatic stay, and, pursuant to the provisions of the Bankruptcy Code, the Bankruptcy Court may award actual damages, including costs and attorneys' fees (and, in appropriate circumstances, punitive damages) to compensate the Debtors for loss arising out of violations of the automatic stay.

I don't know if that's boilerplate or not, but it's hardly out of character for SCO..

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 14, 2007 20:23 UTC (Fri) by proski (subscriber, #104) [Link]

Groklaw story, be sure to see the comments.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 14, 2007 20:58 UTC (Fri) by cventers (guest, #31465) [Link] (1 responses)

Notice that they still claim in their press release that they own UNIX...

Haven't updated their boilerplate

Posted Sep 15, 2007 0:17 UTC (Sat) by dmarti (subscriber, #11625) [Link]

Probably because their PR guy left to work for a Linux-using company in February.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 15, 2007 0:04 UTC (Sat) by pr1268 (guest, #24648) [Link] (5 responses)

Wow... I'm surprised they made it this long. I wonder how this will affect the litigation (I didn't say "trial" here because I'm unsure what the status is of any SCO trial at this time).

The trial is off, for now

Posted Sep 15, 2007 0:55 UTC (Sat) by pr1268 (guest, #24648) [Link] (4 responses)

Having read some of the Groklaw comments, it appears that the trial that was due to start Monday is now off.

Related story: A lot of the Groklaw folk mention that the APA money that Judge Kimball has declared is rightfully Novell's is not a debt, but rather non-asset money that SCO appears to be sitting on. In other words, Novell should get their money before the creditors start lining up. According to many posts on Groklaw. IANAL

The trial is off, for now

Posted Sep 15, 2007 1:29 UTC (Sat) by ncm (guest, #165) [Link] (3 responses)

... but now that the trial is off, Novell don't get to have the court declare how much of the money is theirs, but tSCOg gets to continue spending it.

The trial is off, for now

Posted Sep 15, 2007 7:56 UTC (Sat) by mbottrell (guest, #43008) [Link] (2 responses)

Whilst the trail is on hold (the further items unresolved), this does NOT stop the Judge calculating the loss to Novell.

In fact it's required in order for the Chapter 11 to actually go ahead.

SCO knows they can't avoid paying Novell, however it's wishing to avoid the deep pockets of IBM and Redhat also taking a slice of them.

The Novell decision has been made (it's only a figure that needs to be placed on it).

The trial is off, for now

Posted Sep 16, 2007 17:40 UTC (Sun) by pr1268 (guest, #24648) [Link] (1 responses)

This sounds like a catch-22. SCO files for Ch. 11 in order to stay the trial that was set to begin on Monday. But, the bankruptcy proceedings cannot begin until the Novell matter is resolved. Seems similar to a deadlock condition I studied in an operating systems class! ;-)

The trial is off, for now

Posted Sep 16, 2007 23:48 UTC (Sun) by dlang (guest, #313) [Link]

the bankruptcy court has the power to decide to allow the Novell trial to go forward, and you can bet that Novell is going to ask for exactly that.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 15, 2007 15:13 UTC (Sat) by wilreichert (guest, #17680) [Link]

shoulda but lawyers _after_ programmers on the alloted yearly budget, eh?

What can happen Tuesday

Posted Sep 15, 2007 21:53 UTC (Sat) by leews (guest, #4690) [Link]

For commentary on what may happen on Tuesday when the C11 hearing goes ahead, read lamlaw.com.

Apparently, SCO can propose what it want to do, but it is up to the Judge, after hearing petitions from Novell, IBM, Redhat, etc. what exactly to do, even go straight to Chapter 7 instead.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 15, 2007 23:46 UTC (Sat) by error27 (subscriber, #8346) [Link]

There really is a lot of interesting stuff in the bankruptcy filings. The investor village crowd was going over it.

You get to see exactly how much stock everyone owns. There are 402 people who bought stock. Everyone who bought 1 share as a souvenir gets their name in a court filing. Apparently Darl McBride doesn't own any stock which is strange since we know he used to have some.

The list of people that SCO owes money to is also interesting. They owe money to a PI firm (PJ's stalkers perhaps?). They owe money to Maureen O'Gara. I take a small amount of pleasure that because of the bankruptcy MoG is probably not going to get paid. Speaking of reporters getting paid I wonder how much Enderle got paid for speaking at the SCO forum...

They owe money to restaurants and an a charity for orphans. Apparently there is no one that SCO won't rip off.

SCO Group files for Chapter 11 bankruptcy (Reuters)

Posted Sep 16, 2007 13:30 UTC (Sun) by danielhedblom (guest, #47307) [Link]

Will this really fly? Its timing is just to convinient. Just as Novell is about to get the exact number on how much money SCO has that belongs to Novell they file for chapter 11. Bear in mind that this isnt money owed to Novell, its Novells money from the start. SCO was supposed to hand over all the money from SUN and Microsoft to Novell and then get 5% back.

When those money are decided to be Novells in court SCO is toast. They know this and will try in any way to prolong the inevitable. My guess would be that Novell, IBM and RedHat will try to get the chapter 11 court to pass on chapter 11 and go straight for bancruptcy. Since SCO has employed 4! additional law firms there wont be any money left in a very short time.


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