SCO Linux Files for Chapter 11 (Bankruptcy)

The SCO Group filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO’s subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. As many had predicted over the years, SCO’s last ditch attempt to force Linux users to fund the company proved fruitless.

Their largest creditor is Amici LLC, a Albany, NY based document discovery service for lawyers (debt: $500650.73), followed by their lawyers Bois Schiller & Flexner, LLP (debt: 287256.39). Third in the list is The Canopy Group which is an investment company based in San Francisco, CA. Interestingly Bois has exceptionally strong ties with Amici.

Their approximate total assets are $14,800,000 and total liabilities are $7,500,000. That’s not counting the debt the Utah court ruled Novell is owed, amount to be determined at the now postponed trial.

GrokLaw has more dirt on this case.

Their attempt to sue the Linux community in general not only didn’t help them but also earned them some really bad PR, which will make it even harder for them to emerge out of this bankruptcy. SCO will remain a prime example of what happens when you stop relying on your business and rely only on your lawyers to bail you out.