SCO has filed its reorganization plan:
The SCO Group Files Formal Reorganization Plan With Bankruptcy Court
Tuesday March 4, 8:00 am ET
Filing marks a key milestone for SCO in emergence from Chapter 11
LINDON, Utah, March 4 /PRNewswire-FirstCall/ -- The SCO Group, Inc., (Pink Sheets: SCOXQ - News) a leading provider of UNIX® software technology and a provider of mobility solutions, today announced the filing of its Chapter 11 Reorganization Plan ("Plan") and Disclosure Statement with the Bankruptcy Court in Delaware on Friday, February 29, 2008. The filings can be reviewed at sco.com
Key provisions of the Company's Plan, as filed with the Bankruptcy Court, include: (i) full payment (with interest, if applicable) of approved creditors' claims as allowed on the effective date of the Plan, (ii) full payment (with interest, if applicable) of all claims subject to pending litigation (if, when and to the extent the courts allow such claims), and (iii) distributions to equity holders. The Plan allows SCO to focus its efforts on the development, sales and support of its UNIX and mobile technologies. The Plan also provides for the establishment of a new board of directors as well as the appointment of a new Chief Executive Officer on its effective date. The Plan is subject to, among other conditions, Bankruptcy Court approval. A hearing for approval of the Disclosure Statement is scheduled before the Bankruptcy Court on April 2, 2008.
"This is an important milestone in emerging from Chapter 11 bankruptcy," said Jeff Hunsaker, President and Chief Operating Officer of SCO Operations. "We have been working together with the Stephen Norris Capital Partners team carefully preparing a plan that will pay qualified creditors' claims, provide a return to profitability, expand our business, and continue to provide our customers and partners with the solutions and services they need to run and grow their businesses. We continue to be encouraged by the feedback we are receiving from our customers, partners and stockholders. One large customer in Italy announced to us this week that after having left our UNIX platform and trying Microsoft® Windows(TM) and Linux, they are returning to SCO OpenServer 6 due to its unmatched stability and reliability," said Hunsaker.
Stephen Norris Capital Partners (SNCP) has, subject to continued due diligence, committed to provide up to $100 million to finance the SCO Plan of reorganization and to take the Company private. Stephen Norris said, "This reorganization plan is a positive step for SCO's customers, partners and stockholders and a major win for all parties. This plan will enable it to grow its business, especially outside the U.S., and if possible, settle its outstanding litigation on a favorable and reasonable basis."
Mark Robbins, co-partner with Stephen Norris in SCO's investment transaction said, "We have a firm belief in SCO's technology platform and its potential to be expanded especially outside of the United States. SCO has a solid customer base of industry leaders. This Plan provides the necessary direction and strategy to begin moving in a positive direction."
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