Re: [Hampshire] [OT] Sco go for Chapter 11

>> they are bankrupt
>
> Bankrupt in the sense that they have sought some legal protection
> from debters whilst undergoing reorganisation supervised by a
> bunkruptcy court.

The key word here is "sought". Filing for Chapter 11 protection doesn't
mean you get it :-) The court could decide to put them into Chapter 7
liquidation anyway.

The purpose of Chapter 11 is to allow a bankrupt business to trade its way
out of trouble when the business is worth more as an ongoing concern than
it is as a set of liquidated assets. IANAL, but I can't see how that
applies to SCO, given their track record over the last few years, their
concentration on IP trolling to the detriment of their (once-great)
software development, and the fact that the court has already decided they
really don't have any assets...

> The can continue to operate, and it doesn't mean
> that they are completely dead - companies do recover from chapter 11.

In this case, I doubt they'll go into Chapter 11.

All the filing does is to put a stay on the Novell/IBM/RedHat trials. The
Novell case was due to get to court this week - that won't now happen
until the bankruptcy process is complete, one way or another. In the event
that Chapter 11 is granted, the court might grant SCO relief (which might
only be partial) - but I really doubt they'll get it.

> Chapter 11 seems to be quite lenient in what it allows companies to
> do whilst they're filed under it. They're not dead yet (though we
> can hope).

They're dead. It's just a case of deciding whether there are any organs
left worth harvesting, or whether it's time to switch off the
ventilator...

Vic.