Although SCO is not saying there is a connection, less than a week after BayStar Capital demanded that SCO redeem its stock, the company is naming a new CFO.
The SCO Group Inc.
announced Wednesday that it has hired Bert Young as the companys new chief financial officer. SCO is not saying whether the move is connected to BayStar Capital Management LLCs attempt to pull its investment
On April 15, SCO executives said BayStar Capital was seeking to redeem
its 20,000 shares of SCOs series A-1 convertible preferred stock. BayStar is alleging that SCO breached sections of a February financing agreement among SCO, BayStar and the Royal Bank of Canada. BayStar had invested $20 million in SCO. Prior to this move, it had been discovered that Microsoft had lobbied
BayStar to invest in SCO. BayStar is not revealing any details
about the matter, up to and including whether BayStar has actually demanded the redemption of its shares.
Young brings to SCO a seasoned background in executive-level management responsibilities from a variety of information technology companies, including worldwide finance, operations, mergers and acquisitions expertise.
Before coming to the Lindon, Utah, company, Young was the vice president and CFO for LANDesk Software Inc.,
a network administration company with a strong reseller program, where he was accountable for all financial management and reporting to company stockholders. His background includes financial responsibility for both private and public companies, as well as major acquisitions and mergers and the securing of investment capital.
Before his time at LANDesk, Young was CFO for Usight and Talk2 Technology Inc. At these companies, he was responsible for, among other things, turning venture capital into positive cash flow, managing steep growth curves and satisfying auditors.
Prior to that, Young was CFO for Whittman-Hart, an application service provider, where he oversaw the $7 billion merger between Whitman-Hart and USWeb/CKS that led to the formation of MarchFirst, a company with more than 9,000 employees in 70 offices in 14 countries. Young directed the integration of the two companies financial and accounting systems in 2000. After a high-flying start that saw MarchFirsts stock zoom to a high of $81.13, the companys stock plummeted in the dot-com crash and it filed for Chapter 11 bankruptcy on April 12, 2001. MarchFirst was unable to set itself right and never emerged from bankruptcy.
"We look forward to Berts contributions in helping drive additional efficiencies in our company operations," said Darl McBride, SCOs president and CEO. "His years of experience in all facets of worldwide operations will enhance our current management team."
Bob Bench, the companys former CFO, will assume the responsibilities of acting vice president of corporate development. Bench had been SCOs CFO for the past three and one half years and will focus on external growth opportunities and industry partnership on a temporary basis.
After the company fills this position on a permanent basis later this year, Bench will retire from SCO. "These changes in senior management responsibilities will allow significant focus on efficient internal operations, development of our current product lines, and the addition of technologies and products through acquisition and partnering," said McBride.
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