On Monday, SCO announced that it had filed for Chapter 11 bankruptcy protection. Despite the drastic move, SCO told customers business would continue as usual during the bankruptcy proceedings. SCO CEO Darl McBride even insisted, "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." However, the company has changed its tune since then.
As CNet reports, SCO now says it may have to fold permanently depending on the extent of the damages it ends up owing Novell. SCO's lawsuit against Novell backfired last month when a federal judge not only threw out the case, but also ruled that SCO owed Novell royalties for its licensing of Unix to Sun and Microsoft in 2003. The court has yet to calculate the extent of those royalties, but CNet says they could total up to $30 million—perhaps enough to sink SCO for good.
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