Hi-Tech Squad

SCO Group, best known for suing IBM about Linux, has filed for Chapter 11 bankruptcy. This was widely predicted even during the failed IBM law suit, but the timing as left some surprised as many expected SCO to run out of cash at the beginning of this year.

By filing Chapter 11,  SCO have gained time in which all foreclosures, collection activities, repossessions of property and (most importantly) judgments are suspended and may not be pursued by the creditors on any debt or claim that arose before the bankruptcy petition filing.

SCO can file reorganization plan during the first 120-day period and may ask for an extension of up to 18 months to come up with an acceptable reorganization plan that will enable it to meet its debts. SCO intends to maintain all normal business operations throughout the bankruptcy proceedings.

Listed among the creditors are HP, Novell, IBM  and Sun.

You can read more here and here.

Tweet This Post  Digg This Post  Reddit This Post  Stumble This Post 

gary Linux