The SCO Group, Inc. issued a press release today announcing it has filed a petition for Chapter 11 bankruptcy protection. SCO Operations, Inc., a subsidiary of SCO, also filed for protection. The decision comes after SCO lost a court battle in its suit against Novell last month.
According to the press release, SCO will continue normal operation during the reorganization. The company insists the cash will be available to do so.
SCO President and Chief Executive Officer Darl McBride was quoted in the press release asserting the company's resolve. "We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business critical operations," McBride said. "Chapter 11 reorganization provides the Company with an opportunity to protect its assets during this time while focusing on building our future plans."
SCO sued IBM in 2003 and Novell the next year, claiming that SCO allegedly owned Unix code that was used to develop Linux. SCO was dealt a serious blow in its case against Novell recently when the U.S. District Court in Salt Lake City ruled that Novell owned the Unix code that was in dispute. SCO is scheduled to go to court next week for a ruling as to how much to pay Novell for license fees SCO collected from other companies for the use of that code.