SCO fights off Chapter 7 bankruptcy
You gotta hand it to SCO, they've got an incredible knack for survival. I (like many others) was expecting SCO to enter into Chapter 7 bankruptcy this week - that means the existing Chapter 11 bankruptcy that protects SCO from creditors would be converted to a liquidation where creditors carve up SCO's assets.
As it turns out, SCO has another 'trick' up its sleeve -- pulling out a renewed agreement according to a report in the Salt Lake Tribune with investor Stephen Norris to pay off creditors and keep SCO's litigation claims against IBM, Novell and others afloat.
Groklaw reports that the new hearing set for July 16 with backup for July 27.
Norris came to the aid of SCO first in February of 2008 with a proposed $100 million lifeline. Norris is now back and his action - for now - is keeping SCO a going concern for at least another month.
SCO enterned into Chapter 11 protection in 2008 after losing a decision to Novell on the ownership of UNIX copyrights.The company had been delisted from NASDAQ in late December 2008, and has since been traded in over-the-counter "Pink Sheets."