SCO files for Chapter 11 bankruptcy

With cash reserves running out, the SCO Group, Inc has filed for bankruptcy protection. In a move that probably did not surprise many, the company made the announcement in a news release issued on Friday afternoon, just before the stock exchange closed for the week.

The statement says:

"The Board of Directors of The SCO Group 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."

Mirroring sentiments felt by many who follow the case, Jim Zemlin, executive director of the Linux Foundation, said in a statement e-mailed to IDG News: "Their legal strategy was ill-conceived and misguided. Companies like Red Hat, IBM, and many others have proven that it's far smarter to build a business around Linux than it is to attack it in the courts."

Excerpt from InfoWorld:

Technically they have filed a "Chapter 11" bankruptcy protection, which means these are moves to help thwart off a final bankruptcy. They can reorganize during this time and anyone who is owed money by SCO will likely get only a fraction of what they are due. In some cases, companies can re-emerge stronger after Chapter 11, but few do.

To read more about this:

Misguided business practices or not, the ones most hurt will be the customers of SCO.

For those of you running SCO, what are your plans?