SCO Insolvent
SCO filed for protection under Chapter 11 of US bankruptcy laws on Friday.
The company, known for its lengthy lawsuits concerning Unix rights, lost a decisive battle mid August when a US court ruled that Novell was the owner of the Unix code. At the same time, the court ruled that Novell was entitled to licensing fees based on its ownership.
Hit by litigation costs, SCO was threatened with NASDAQ delisting in late April; now the Supervisory Board has filed for protection with the court in Delaware. While under court supervision, SCO will have an opportunity to restructure. No debts will be collected in this period, while the court decides whether the company is capable of running economically. The main case in the Novell lawsuit is due to be heard September 17, however, under Chapter 11 the lawsuit will automatically be postponed.
Legal commentators on Groklaw have compiled a list of documents that SCO will be forced to publish under Chapter 11, including the Supervisor Board decision from September 13, and a list of outstanding debts. According to Groklaw SCO has total debts of US$ 7.5 m, but the company is worth US$ 14.8 m in total. The list of creditors does not include Novell's claim for outstanding license payments totaling at least US$ 25 m. SCO's lawyers state that the second largest item is legal fees totaling US$ 287 000, with investment company Amici topping the list at half a million US$. Novell asked the court for a quick decision back in January, stating that its opponent, SCO, would be running out of money soon and would thus be unable to fulfill its obligations.
Subscribe to our Linux Newsletters
Find Linux and Open Source Jobs
Subscribe to our ADMIN Newsletters
Support Our Work
Linux Magazine content is made possible with support from readers like you. Please consider contributing when you’ve found an article to be beneficial.
News
-
NVIDIA Released Driver for Upcoming NVIDIA 560 GPU for Linux
Not only has NVIDIA released the driver for its upcoming CPU series, it's the first release that defaults to using open-source GPU kernel modules.
-
OpenMandriva Lx 24.07 Released
If you’re into rolling release Linux distributions, OpenMandriva ROME has a new snapshot with a new kernel.
-
Kernel 6.10 Available for General Usage
Linus Torvalds has released the 6.10 kernel and it includes significant performance increases for Intel Core hybrid systems and more.
-
TUXEDO Computers Releases InfinityBook Pro 14 Gen9 Laptop
Sporting either AMD or Intel CPUs, the TUXEDO InfinityBook Pro 14 is an extremely compact, lightweight, sturdy powerhouse.
-
Google Extends Support for Linux Kernels Used for Android
Because the LTS Linux kernel releases are so important to Android, Google has decided to extend the support period beyond that offered by the kernel development team.
-
Linux Mint 22 Stable Delayed
If you're anxious about getting your hands on the stable release of Linux Mint 22, it looks as if you're going to have to wait a bit longer.
-
Nitrux 3.5.1 Available for Install
The latest version of the immutable, systemd-free distribution includes an updated kernel and NVIDIA driver.
-
Debian 12.6 Released with Plenty of Bug Fixes and Updates
The sixth update to Debian "Bookworm" is all about security mitigations and making adjustments for some "serious problems."
-
Canonical Offers 12-Year LTS for Open Source Docker Images
Canonical is expanding its LTS offering to reach beyond the DEB packages with a new distro-less Docker image.
-
Plasma Desktop 6.1 Released with Several Enhancements
If you're a fan of Plasma Desktop, you should be excited about this new point release.