Linked by Thom Holwerda on Thu 14th Feb 2008 21:06 UTC
SCO, Caldera, Unixware Having almost disappeared completely late last year, SCO says it has been resuscitated by a new financing plan. Under the terms of the deal, Stephen Norris Capital Partners and "its partners from the Middle East" will supply up to $100 million, enabling SCO to reorganize and launch a new series of products. SNCP will gain a controlling interest in the company, and take it private, allowing it to slip out of Chapter 11 bankruptcy protection. Update: As part of the reorganisation, Darl McBride will be let go. Buried in the proposed MOU (Memorandum of Understanding) between Unix vendor and Linux litigator SCO and SNCP is the note that "upon the effective date of the Proposed Plan of Reorganization, the existing CEO of the Company, Darl McBride, will resign immediately."
Thread beginning with comment 301106
To view parent comment, click here.
To read all comments associated with this story, please click here.
RE[3]: D/\MN IT!
by IanSVT on Fri 15th Feb 2008 15:33 UTC in reply to "RE[2]: D/\MN IT!"
IanSVT
Member since:
2005-07-06

Taking it private would probably set them up as being liable. And seeing as SCO has Novell's foot on its neck, that's not a good position to put yourself in.

Reply Parent Score: 2

RE[4]: DuMb NITs!
by glarepate on Fri 15th Feb 2008 19:16 in reply to "RE[3]: D/\MN IT!"
glarepate Member since:
2006-01-04

[I don't mean you Ian...]

Well, here are a few details that may give you a new impression of how The Deal works.

They are putting up $2 million in a trust to pay off current stockholders. Don't want to drive away [the small] investors now, do they? Well. that's about $0.091/share. This news has pushed the stock price up to $0.105, so the soon-to-be-losers in the lawsuit lottery have already lined up and paid their money to be suckered.

They are providing a line of credit for the SCOfflaws to pay Novell and IBM and their other creditors, such as the local pizza company and their expert witlesses that didn't help them in court (no mention of RedHat's Lanham Act suit), @ 17% interest... How much liability is there down the road? Unknown, possibly in excess of a $billion or two? But at that interest rate it at least makes a great write-off in case the investment company scores big on something that actually succeeds.

They do intend to take it private. But if Novell gets $30 million and IBM gets a settlement on the order of multi-hundreds of $millions (possibly $billions if they claim intentional malfeasance, just their legal expenses are running close to $40 million already) then that line of credit and the APR that comes with it will be less valuable than a SCOsource Pee In Your Eye license (no refunds if they lose, but users requested the license to compensate us for our Eye Pee, yeah, right).

Reply Parent Score: 2