SCO Files for Bankruptcy Protection

SCO heads for cover after losing a crucial court decision over ownership of Unix copyrights.

A month after being on the losing end of a critical legal ruling in its campaign to claim ownership of the Unix and UnixWare copyrights, the SCO Group filed for Chapter 11 bankruptcy protection from its creditors. SCO said it plans to maintain all normal business operations throughout the bankruptcy proceedings.

According to a SCO statement, the companys Board of Directors unanimously decided that the Chapter 11 reorganization was in the best long-term interest of the company and its shareholders, employees and customers.

SCO and its subsidiaries plan to use the cash flow from consolidated operations to meet capital needs during the reorganization process.


Click here to read about SCOs legal conflict with Novell.

"We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business critical operations," Darl McBride, president and CEO of SCO, based in Lindon, Utah, said in the statement.

"Chapter 11 reorganization provides the company with an opportunity to protect its assets during this time while focusing on building our future plans."

SCO also said it had filed a series of motions in court to "ensure that it will not have any interruption in maintaining and honoring all of its commitments to its customers."

In 2004, SCO, a former Linux seller that moved to Unix, sued IBM and others, claiming that IBM had illegally shifted proprietary Unix technology into its open-source Linux. The case dragged through the courts for years before an August court decision that Novell—not SCO—owns the copyrights to Unix.


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