SCO Plans Rebound Thanks to $100M Lifeline
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Embattled Unix vendor SCO may get a new lease on life, thanks to a $100 million infusion aimed at helping it emerge from bankruptcy and pursue its controversial legal claims.
The financing comes from Stephen Norris Capital Partners (SNCP), which will take a controlling interest in SCO as part of the deal.
"Not only will this deal position us to emerge from Chapter 11, but it also marks an exciting future for our business," said Jeff Hunsaker, the company's president and COO of SCO Operations, in a statement.
[cob:Related_Articles]"This significant financial backing is positive news for SCO's customers, partners and resellers who continue to request upgrades and rely upon SCO's UNIX services to drive their business forward," he said.
According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.
SCO has been locked in bitter legal battles with both IBM and Novell over Unix copyright issues. Those battles haven't gone all that well for the company recently.
In an August decision Judge Dale Kimball ruled against SCO, finding that Novell was the owner of the disputed Unix and UnixWare copyrights. That ruling ultimately led to SCO's filing for Chapter 11 bankruptcy protection.
SNCP's efforts will also include new product lines, SCO said. The company's statement did not provide additional detail on either parts of the plan.
While under bankruptcy protection, the company continued to maintain its core Unix offerings. In November, it released an update to its flagship OpenServer 6 Unix product line.
The company said its board of directors unanimously approved the deal with SNCP, which, once finalized, will mean SCO becomes privately traded as a result.
The company had been delisted from NASDAQ in late December, and has since been traded in over-the-counter "Pink Sheets."
The $100 million dollar financing is nearly triple the $36 million for which SCO appeared willing to sell its Unix business off in October, when it announced a tentative bid from York Capital. That deal ultimately fell through.