Late last year, federal district judge Dale A. Kimball upheld a prior court decision that dismissed SCO’s claims and granted Novell $2.54 million in declaratory relief.
While this legal brouhaha had been happening for many, many years, the November decision was the final nail in SCO’s coffin. Though SCO could have opted for an appeal, the financially-strapped firm could not cover the cost of the $2.54 million bill and subsequently entered into bankruptcy.
Fast-forward to today, where the US Trustee’s office is petitioning to move SCO’s bankruptcy from Chapter 11 to Chapter 7, a move which would liquidate the firm’s assets to cover its bills.
The Trustee’s office claims that the company is beyond recovery and has been unable to cover its bills even after being given the reins to liquidate assets on its own terms.
Additionally, not only is there no reasonable chance of “rehabilitation” in these cases, the Debtors have tried — and failed — to liquidate their business in chapter 11.
This is perhaps an inevitable turn of events, but it makes for a pleasant Monday to read about SCO taking more dirt in the eyes.
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