SCO Group files for bankruptcy protection

Three and a half years after launching a high-profile legal attack on Linux, the SCO Group has filed for Chapter 11 bankruptcy protection. The Lindon, Utah-based company long has maintained that it had enough money to fight its costly lawsuits against IBM, Novell, Red Hat (which sued SCO proactively), AutoZone and DaimlerChrysler. But on Friday, […]

Three and a half years after launching a high-profile legal attack on Linux, the SCO Group has filed for Chapter 11 bankruptcy protection.

The Lindon, Utah-based company long has maintained that it had enough money to fight its costly lawsuits against IBM, Novell, Red Hat (which sued SCO proactively), AutoZone and DaimlerChrysler. But on Friday, a month after losing on a crucial legal ruling, the company admitted a grimmer picture.

"The Board of Directors of the SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders and employees," the company said in a statement. Added Chief Executive Darl McBride, "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."

Chapter 11 protects a company's assets from creditors during a reorganization.

IBM didn't comment, but Novell said it's evaluating its options. "U.S. bankruptcy law automatically stays the court case. We're assessing our options for how to pursue our interests," Novell said. A court case was scheduled to begin Monday to determine how much the SCO Group owed Novell as a result of last month's ruling, according to Groklaw, a site that's closely monitored the case.

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SCO, Unxi, Linux, Corporate News