SCO Files Formal Chapter 11 Reorganization Plan
What this means in plain English is that the $100 million bailout (which is really just $5 million up front with the rest on credit) is a little closer to reality today than it was two weeks ago.
Under the terms of the reorganization plan, SCO plans to repay (with interest if applicable) approved creditors'
claims. As well SCO also includes in its filing that it would provide full payment (with
interest, if applicable) on all claims subject to pending litigation (if, when
and to the extent the courts allow such claims).
That said, SCO and its new backers at Stephen Norris Capital Partners (SNCP) aren't looking to lose on their ongoing litigation.
In a statement provided by Norris in a SCO release Stephen Norris stated:
"This reorganization plan is a positive step for SCO's customers, partners and
stockholders and a major win for all parties. This plan will enable it to grow
its business, especially outside the U.S., and if possible, settle its
outstanding litigation on a favorable and reasonable basis."
The reorganization plan though still has at least one major hurdle though - it
needs to actually be approved by the Bankruptcy Court. The hearing on
approval of the plan is now scheduled for April 2, 2008.