Tuesday, 18 September 2007

More from SCOland

The SCO saga has finally reached the interesting stage. Let's have a recap of the last couple of days worth of news.

Friday: SCO files for Chapter 11 bankruptcy. Share prices drop to 0.38 (down 43%).

Sunday: Half of SCOs accountants resign or are fired.

Monday: SCO requests permission with the Bankruptcy court to hire temporary accounting staff. SCO file a notice of late filing with the SEC about their missing 10Q. Apparently now that they've lost most of their accounting staff they're having difficulty keeping up. Share price drops a further 40% finishing at 0.22 (as the days range was from 0.15 - 0.31 the price could drop further today).

So what is the plan for today? Well the bankruptcy hearing is set for 8.30am, with Novell making a showing with their lawyers too.

Even if the courts accept SCOs request for Chapter 11 protection, there is still a real chance that Novell will get its money back BEFORE the creditors get a chance to pick over the carcass. Depending on what is said, SCO could still end up going into Chapter 7 - which would mean that the company would be liquidated to pay its debts.

My personal opinion is that at the point where the SCO management changes (and there is a real possibility that the bankruptcy court may insist on that) then it will be Game Over for SCO.

I'll update this post later on today rather than posting hundreds of SCO related posts.

Update 1 (13:10): SCO's 10Q has now been filed.

Update 2 (22:40): Well, that's it for the day. SCO survived the first Bankruptcy hearing. Novell asked for their money to be placed in a trust, which the Judge denied. Novell are to request a lift on the stay of the Utah trial (the one where just how much SCO owes will be decided). The next bankruptcy hearing is set for October 5, to give everyone who SCO owes money to chance to have their say. Shares finished at 0.16 (down 28%).

No comments: