Friday, 14 September 2007

SCO Files for Chapter 11 Bankruptcy

I'm not too sure if I'm surprised at this or not - but the next chapter in the SCO saga seems to be Chapter 11: bankruptcy.

On Monday the Novell trial was supposed to set just how much SCO owed from their licenses to Microsoft and Sun, so the timing of this announcement would seem to indicate just how secure they believe their position to be - ie. totally boned. Or to put that another way, they probably don't have enough cash reserves left to pay Novell what they owe them.

To quote 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."

As to what this means to the court cases (SCO vs Novell / SCO vs IBM) remains to be seen, although it certainly looks like after four years the end is in sight.

Shares in SCO Group Inc (SCOX) closed at 0.38, down from 0.65 which is a drop of 43.08%.

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