The SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial and Legal Challenges
September 14 2007 - 3:21PM
PR Newswire (US)
Reorganization ensures business as usual and that assets remain for
continued support of customers and channel partners LINDON, Utah,
Sept. 14 /PRNewswire-FirstCall/ -- The SCO Group, Inc. ("SCO")
(NASDAQ:SCOX), a leading provider of UNIX(R) software technology
and mobile services, today announced that it filed a voluntary
petition for reorganization under Chapter 11 of the United States
Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also
filed a petition for reorganization. The Board of Directors of The
SCO Group have unanimously determined that Chapter 11
reorganization is in the best long-term interest of SCO and its
subsidiaries, as well as its customers, shareholders, and
employees. The SCO Group intends to maintain all normal business
operations throughout the bankruptcy proceedings. Subject to court
approval, SCO and its subsidiaries will use the cash flow from
their consolidated operations to meet their capital needs during
the reorganization process. "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." The SCO Group has filed a series of first day motions in
the Bankruptcy Court to ensure that it will not have any
interruption in maintaining and honoring all of its commitments to
its customers. The motions also address SCO's continued ability to
pay its vendors, the retention of various professional advisors,
and other matters. About SCO The SCO Group (NASDAQ:SCOX) is a
leading provider of UNIX software technology and mobile services.
SCO offers UnixWare for enterprise applications and SCO OpenServer
for small to medium businesses. SCO's highly innovative and
reliable solutions help customers grow their businesses everyday,
especially into the emerging mobile market. SCO owns the core UNIX
operating system, originally developed by AT&T/Bell Labs and is
the exclusive licensor to UNIX-based system software providers. The
Me Inc., product line focuses on creating mobile platforms,
services and solutions for businesses and enhances the productivity
of mobile workers. Headquartered in Lindon, Utah, SCO has a
worldwide network of thousands of resellers and developers. SCO
Global Services provides reliable localized support and services to
partners and customers. For more information on SCO products and
services, visit http://www.sco.com/. SCO and the associated logos
are trademarks or registered trademarks of The SCO Group, Inc. in
the U.S. and other countries. Forward Looking Statements The
statements contained in this press release regarding (i) filing for
protection under Chapter 11 and our reorganization efforts under
Chapter 11 bankruptcy protection, and (ii) other statements that
are not historical facts are forward-looking statements and are
made under the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations and are subject to risks and
uncertainties. We wish to advise readers that a number of important
factors could cause actual results to differ materially from
historical results or those anticipated in such forward-looking
statements. These factors include, but are not limited to the
outcomes and developments in our Chapter 11 case, court rulings in
the bankruptcy proceedings, the impact of the bankruptcy
proceedings on our other pending litigation, our cash balances and
available cash, continued competitive pressure on the Company's
operating system products, which could impact the Company's results
of operations, adverse developments in and increased or unforeseen
legal costs related to the Company's litigation, the inability to
devote sufficient resources to the development and marketing of the
Company's products, including the Me Inc. mobile services and
development platform, and the possibility that customers and
companies with whom the Company has formed channel partnerships
will decide to terminate or reduce their relationships with the
company. These and other factors that could cause actual results to
differ materially from those anticipated are discussed in more
detail in the Company's periodic and current filings with the
Securities and Exchange Commission, including the Company's Form
10-K for the fiscal year ended October 31, 2006 and Form 10-Q for
the fiscal quarters ended January 31, 2007 and April 30, 2007, and
future filings with the SEC. These forward-looking statements speak
only as of the date on which such statements are made, and the
Company undertakes no obligation to update such statements to
reflect events or circumstances arising after such date.
DATASOURCE: The SCO Group, Inc. CONTACT: Deborah Gillman of The SCO
Group, +1-801-932-5302, Web site: http://www.sco.com/
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