Linked by Thom Holwerda on Fri 14th Sep 2007 21:36 UTC, submitted by dylansmrjones
SCO, Caldera, Unixware Yahoo reports that SCO has filed [.pdf] for bankruptcy in order to protect assets. "The SCO Group today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees." Groklaw has a story on it, too.
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RE: Not really over....
by kaiwai on Sat 15th Sep 2007 03:39 UTC in reply to "Not really over...."
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Just because a company files Ch.11 doesn't mean it shuts it's doors and disappears. 9 times out of 10 (in US, at least) all that changes is the name outside on the building. All bankruptcy protection means is that SCO doesn't have to pay the creditors it owes.

I worked for a company that filed Ch. 11 three times before being forced into receivership by the board of directors, and having the IRS go after them for tax evasion. That was the only thing that kept them gone.

I think that is the flaw in the US system - and the reason why there is such a big build up of bad debt in the US; companies making stupid decisions, filing chapter 11 and not take responsibility for the decisions they make. Most countries don't have that sort of system in place - the risk to the banking system and investment environment is far to great to allow it.

As for SCO; the decline started at around 2000, I remember the last filing I had a look at, they lost $13million on declining revenue. The last interview with the, IIRC CEO, he berated Microsoft over Windows 2000 having 35million lines of code. That was the moment to take radical action, reduce the price, bundle everything together rather than charging for each component individually. 6 years ago, they had that opportunity to rescue their business, but they failed to wake up and face reality.

Like SGI, they thought it was still the 80s, that paying $3000 per operating system component was acceptable, that paying $14,000 for an under performing workstation was a norm. They failed to wake up and realise that the days of expensive proprietary UNIX systems was a dead end.

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