More on SCO's Chapter 11 Filing
In yet another chapter of what is one of the longest-running soap operas in
tech today, the SCO Group has
filed
for voluntary Chapter 11 bankruptcy protection.
The timing of this filing -- the Friday before its trial with Novell was supposed
to begin -- is seemingly based more on self-preservation than a lack of cash.
The Chapter 11 filing stays that trial until the bankruptcy matter is resolved,
if ever. It will also stay the upcoming IBM trial until its scheduled beginning
should it remain in Chapter 11.
Legal analyst Roger Parloff suggests that SCO may have taken this action to
try to gain
the support of the bankruptcy court in its ongoing legal offensive. It's
the responsibility of the bankruptcy court to maximize the value of the assets
of the company, so Parloff speculates that SCO is hoping that the bankruptcy
judge assumes jurisdiction for the trial that it has already largely lost in
summary judgment. It's a long shot, he concludes, and may only delay the inevitable.
This
Groklaw post, which lists everyone to whom SCO owes money, is interesting
reading.
Posted by Peter Varhol on 09/18/2007 at 1:23 PM