Judge Rebukes SCO, Blocks Sale, Appoints Bankruptcy Trustee

The SCO Group attempted to stave off liquidation in June by signing a last minute deal with Gulf Capital Partners and a tech firm called unXis. The terms of the agreement, which were finalized only moments before a court hearing, stipulated that SCO would sell its remaining UNIX assets for $2.4 million—a maneuver that could have potentially made it possible for SCO to continue pursuing its bogus litigation against the open source Linux operating system.

In a decision this week, a bankruptcy Judge Kevin Gross blocked the asset sale and suggested that SCO should not be permitted to continue burning money to the detriment of its creditors while the litigation goes on forever. He notes that the proposed sale would leave SCO without any tenable reorganization strategy and would make the company’s sustainability entirely dependent on the pending litigation. Expressing frustration with SCO’s stalling tactics, the Judge astutely suggests that SCO’s hopes for successful litigation are looking increasingly like a bad remix of Waiting for Godot.