SCO Applies for Chapter 11 Bankruptcy Protection, Blames Linux

Lora Bentley

SCO Group has announced it is filing Chapter 11 bankruptcy, which ZDNet's Dana Blankenhorn points out is not liquidation, but "where a court official works with a creditors' committee and takes control with the aim of repaying debts." A bankruptcy court in Delaware, has to approve the filing before it will proceed.


InformationWeek reports that CEO Darl McBride blames competition from "alternative operating systems, including Linux" for the company's decline. The claim came in an affidavit McBride filed in support of the bankruptcy petition.


The timing is interesting, if nothing else. Just last month, a judge decided that SCO does not own the copyrights to the UNIX code for which it has been collecting licensing fees for years. Novell does. So SCO may have to turn as much as $25 million of those fees over to Novell. Trial to decide the specific amount was slated to begin Monday.


According to InformationWeek, the company doesn't have enough cash to cover its debts:

As of April 2007, the latest date for which financial numbers were available, SCO had just $7.8 million in cash or equivalents and total assets of only $20 million, SEC records show.

Add Comment      Leave a comment on this blog post
Sep 18, 2007 2:20 AM Mike Mike  says:
Ha Ha! Reply
Sep 18, 2007 4:23 AM Gray Gray  says:
"CEO Darl McBride blames competition from alternative operating systems, including Linux for the companys decline."Now, that's rich! It should be noted that SCO, then known as 'Caldera', once was a Linux company, a proud member of the 'United Linux' group. It was Darl McBride who pulled the plug and started searching a fortune in suing his own customers instead. He can only blame himself for ruining SCO's business. Reply
Sep 28, 2007 5:31 AM Mandrake Mandrake  says:
Caldera was such a great distro at its time, its a shame the SCO Group should end up in bankruptcy but after the court ruled in favor of Novell a drop in their stock value was inevitable. Reply

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