Chapter 11, that is. From Friday’s press release, made public just before the stock market closed:
“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,” said Darl McBride, President and CEO, The SCO Group. “Chapter 11 reorganization provides the Company with an opportunity to protect its assets during this time while focusing on building our future plans.”
This move will once more delay the trial with Novell. That’s probably what McBride meant when he said “protect assets”. Read the details on Groklaw. The news prompted market trading, and SCO’s stock dropped from .57 (at time of press release) to .37 (last trade). [UPDATE 9/17] Market opened at .31; at 1200CDT the last trade was for .23. Yahoo! Finance shows during the week of 3/21/200 SCOX was trading for a high of 132. [UPDATE 9/18] Opened at .21; last trade was .20 (10:15CDT). Half of the accounting staff has quit and SCO has petitioned the bankruptcy court to allow the hiring of accounting temps “to assist the Debtors prepare for the Debtors’ fiscal year end as well as other matters”. Glub, glub. [UPDATE 9/20] from Marketwatch:
Sco Group Inc. said Wednesday evening it has received a notice from Nasdaq that its shares are not in compliance with the exchange’s listing rules. The notice follows the company’s filing last week for Chapter 11 bankruptcy protection. Sco, which provides Unix-based software to run server computers, said it plans to request a hearing before a Nasdaq panel, which will stay a Sept. 27 suspension of the shares. Sco said it cannot provide assurance that the panel will grant its request for continued listing.
Going, going…
