The judge in the on-going SCO bankruptcy case has denied SCO’s attempt to sell itself off. Back in June, SCO tried to sell off part of its business to investor Stephen Norris in an effort to seperate SCO’s Unix business and it’s ongoing litigation against Novell and IBM.
Both Novell and IBM, had their own motion in play – to get the judge to convert SCO’s chapter 11 bankruptcy protection into a Chapter 7 Bankruptcy liquidation. Judge Kevin Gross denied Novell and IBM’s motion as well.
What did happen is that the Judge appointed a trustee to oversee SCO and to evaluate what should happen next. The way I read the court’s opinion, is actually somewhat favorable to SCO. It looks to me like the Judge is giving SCO a way out against the ‘big wealthy’ companies they are facing off against.
“The Court’s decision is not intended as a criticism of Debtors’ efforts or conduct,” Gross stated.”SCO found their UNIX operating system under attack and sought redress through litigation.Their principal adversaries, IBM and Novell, are wealthy and have used their deep pockets in the Litigation and in these bankruptcy cases to Debtors’ disadvantage.”
Gross goes on to note that IBM and Novell are entitled to act in their self-interest and that is what they are doing.
But at the heart of the situation is the fact that SCO really has no money.