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SCO files for bankruptcy

Antony Savvas

The SCO Group has filed for Chapter 11 bankruptcy after continuing to struggle in the market amid its expensive legal battle against the likes of Novell and IBM over the development of Linux.

"The board of directors of SCO Group have unanimously determined that Chapter 11 reorganisation is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees," said SCO in a statement.

"The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings," it said.

Darl McBride, CEO of the SCO Group, said, "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."

The bankruptcy move, which protects the firm's assets while still trading, comes less than a month after SCO essentially lost its legal case against Novell over which firm owned Unix technology.

Novell's technology has been used in the open source Linux development community.

SCO is also currently suing IBM over the way it has contributed code to the Linux community, but most of its claims in that case have already been thrown out.

The massive legal bills, along with a poor trading performance, have sent SCO into the red.





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