10K Filing Suggests Grim Outlook for SCO

dacarr writes "SCO has filed their 10K with the SEC — and according to this, their own assessment of the company's outlook is pretty grim. As usual, PJ of Groklaw has a good synopsis of the filing highlights. In short, it boils down to one thing: unless there's a miracle, even SCO doesn't think they're going to come out of this. 'As a result of the Chapter 11 filings, realization of assets and liquidation of liabilities are subject to uncertainty. While operating as debtors-in-possession under the protection of Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated financial statements, in the ordinary course of business, or, if outside the ordinary course of business, subject to Bankruptcy Court approval. In addition, under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, post-petition liabilities and prepetition liabilities must be satisfied in full before stockholders are entitled to receive any distribution or retain any property under a plan of reorganization.'"

Comments

Debtor's Prison

[bhima]

Unless this includes all the SCO management doing a stint in some medieval debtor's prison, it's not nearly grim enough.... On the other hand I think this is a great opportunity to start a Linux distro with SCO personality to provide all the remaining SCO user base a less painful transition after the death of SCO. We could even call it Pescadero Linux, because we all know how well the last project with that name turned out.

Money spent on litigation

[gihan_ripper]

For me, one of the interesting facts in the report is the amount they've spent on litigation since Oct 31, 2004: a massive $13,167,000. At least they're honest about their chances of survival: "Our limited cash resources may not be sufficient to fund continuing losses from operations and the expenses of the SCO Litigation."