SCO files for bankruptcy (Chapter 11)
Plastic PPRuNer
Thread Starter
SCO files for bankruptcy (Chapter 11)
SCO, the company that pretended to be the old Santa Cruz Operation and tried (as a Microsoft supported sock-puppet) to stiff all Lunix users for $599 and slow the spread of Linux by spreading FUD, has folded and applied for Chapter 11 bankruptcy.
After losing their fight against Novell, with Judge Kimball ruling that they do NOT own the UNIX copyrights and never did, their legal strategy has collapsed (it was all bluster anyway) and there's little left to do but tidy up the loose ends.
Oh, and face all the wrath of IBM, who won't be satisfied until this ripoff artist is ground into little tiny fragments, their fields salted and the instigators in gaol.
Read all about it: http://www.groklaw.net/article.php?s...70914152904577
Like rogues take warning....
Mac
After losing their fight against Novell, with Judge Kimball ruling that they do NOT own the UNIX copyrights and never did, their legal strategy has collapsed (it was all bluster anyway) and there's little left to do but tidy up the loose ends.
Oh, and face all the wrath of IBM, who won't be satisfied until this ripoff artist is ground into little tiny fragments, their fields salted and the instigators in gaol.
Read all about it: http://www.groklaw.net/article.php?s...70914152904577
Like rogues take warning....
Mac
Plastic PPRuNer
Thread Starter
"Presumably so as they can avoid paying the horrendous legal costs that they must owe."
Actually no, they worked out some sort of deal with BSF (their lawyers) that their fees would be capped quite some time ago. I believe BSF got shares (now worthless of course as the stock price has fallenb through the floor).
I think the idea is to put off the SCO/Novell trial as long as possible (all pending litigation is suspended while Chap 11 is sorted out). After losing their judgement to Novell, the only thing the trial (due to start on Monday) was really about was exactly how much of the $25m that they owe Novell (and illegally converted) do they have to pay, all or just most of. Anyway, it'll eviscerate the company.
Chap 11 allows things to be put on hold while they "reorganise" the company. Unfortunately there isn't much to reorganise. The bankruptcy court may well recognise this and recommend Chap 7 (the firesale exit).
Interestingly, the bankruptcy court can't determine SCO's assets until the final Novell judgment, which the Chap 11 effectively halts! SCO have now hired a total of 4 law firms to deal with the Chap 11 and attempt to churn the legal machine for as long as possible.
The whole saga has truly been a breathtaking example of how to exploit the courts and the law even when you have nothing and this latest piece of sophistry is well up to standard.
Unfortunately, after Sarbanes-Oxley this sort of thing is frowned upon and Darl and his pals may end up in jail and Boies-Schiller (their law firm) with sanctions or disbarment.
As Saab says, a sordid tale.
Mac
Edited to add: Reasonable summary in The Inq here - http://www.theinquirer.net/?article=42372
Actually no, they worked out some sort of deal with BSF (their lawyers) that their fees would be capped quite some time ago. I believe BSF got shares (now worthless of course as the stock price has fallenb through the floor).
I think the idea is to put off the SCO/Novell trial as long as possible (all pending litigation is suspended while Chap 11 is sorted out). After losing their judgement to Novell, the only thing the trial (due to start on Monday) was really about was exactly how much of the $25m that they owe Novell (and illegally converted) do they have to pay, all or just most of. Anyway, it'll eviscerate the company.
Chap 11 allows things to be put on hold while they "reorganise" the company. Unfortunately there isn't much to reorganise. The bankruptcy court may well recognise this and recommend Chap 7 (the firesale exit).
Interestingly, the bankruptcy court can't determine SCO's assets until the final Novell judgment, which the Chap 11 effectively halts! SCO have now hired a total of 4 law firms to deal with the Chap 11 and attempt to churn the legal machine for as long as possible.
The whole saga has truly been a breathtaking example of how to exploit the courts and the law even when you have nothing and this latest piece of sophistry is well up to standard.
Unfortunately, after Sarbanes-Oxley this sort of thing is frowned upon and Darl and his pals may end up in jail and Boies-Schiller (their law firm) with sanctions or disbarment.
As Saab says, a sordid tale.
Mac
Edited to add: Reasonable summary in The Inq here - http://www.theinquirer.net/?article=42372
Last edited by Mac the Knife; 15th Sep 2007 at 16:54.
I read this at Groklaw as well. Not entirely surprising, given their track record so far, but....bugger it!...... I was *really* looking forward to the trial so I could watch SCO to get their just desserts.
