Nasdaq to Delist SCO Sep 27

symbolset writes "The Nasdaq Staff has decided to delist SCO at open of business on September 27, 2007 under their discretionary authority and as a result of SCO filing for Chapter 11 bankruptcy protection. SCO can get a hearing but "There can be no assurance that the panel will grant the Company's request for continued listing.""

Comments

A good start, but...

[russotto]

Someone, maybe Novell, needs to ask the Bankruptcy Court to deny SCO's filing for Chapter 11 on the grounds that there's no way they can re-organize into a viable operation, and therefore they need to be liquidated. Then the creditors can auction off the honor of kicking Darl out on his ass.

Re:A good start, but...

[DaveAtFraud]

The conversion from chapter 11 (re-organization) to chapter 7 (liquidation) happens automatically if the company can't show how they can remain a going concern. Assuming Novell gets justice, this is a done deal.

The judge in the SCO v. Novell case ruled that SCO retained money that legally belonged to Novell (the legal term is "conversion"). The amount has yet to be determined but chances are that it is greater than SCO's net worth ($30 million has been bandied about). Since this is money that SCO had no right to keep, Novell moves ahead of the creditor pack and SCO is toast. If you dig around on Groklaw, someone found the clause in the Asset Purchase Agreement (APA - the legal document that set up SCO as the bagman and overseer of Unix licenses) that states that money collected by SCO for Unix SVRX licenses belongs to Novell specifcally in case SCO declares bankruptcy.

SCO is in the same position as a bank robber who tries to declare bankruptcy to avoid giving the bank back it's money. The bank robber may have other creditors but they have no claim on the money stolen from the bank since it's still the bank's money. SCO didn't rob a bank but they illegally converted money that belongs to Novell into their own which amounts to the same thing.

I wonder if any of SCO's old trade show swag is at all interesting. Who knows, in fifty years it might be worth something on e-bay.

Cheers,
Dave

Re:What happens?

[Anonymous Coward]

You go to pinksheets.com, buy the amount of stock back you shorted for pennies on the dollar, then surrender it back to your broker.

Re:hmm

[mudshark]

Interesting factoid: It's currently number 86 out of the 100 oldest .com domain names which remain in use today. Funny how the number 86 would prove portentous...from UNIX for x86 processors to being 86ed from the NASDAQ.