SCO filed for liquidation
August 10, 2012
As already mentioned in a previous post, the SCO economic situation is not one of the best ones.
After close to 10 years from SCO litigious policy against all UNIX companies and having already declared Chapter 11 bankruptcy, they have filled for Chapter 7.
The difference between the Chapter 11 and Chapter 7 is that Chapter 11 is a situation where the management is still confident that the company can survive after restructuring and reorganization. Chapter 11, on the other hand, is filled when the management believes there is no way the company can survive and will therefore initiate the liquidation process.
In a weird twist, SCO asks permission to continue the standing litigations (notably the IBM one) without guaranteeing the money to pay for the lawyers. To make the deal acceptable, they clarified that in case of a litigation victory, the first to be paid would be the lawyers, and then, if there is money left, the other creditors would be paid.
I would have hoped for the interruption of any standing litigation, but I guess the lawyers prefer to chance of getting paid for their work over a sure loss.