SCO Group files for bankruptcy protection

SCO Group files for bankruptcy protection

SCO Group Inc. has now revealed that it has filed for bankruptcy protection. The company seems to have run out of cash reserves.

The company said in a press release on this new development: “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.”

SCO was once one of the leading vendor of the Unix operating system. However, it lost all the respect of the market after it got entangled in a long-running lawsuit against IBM related to Linux operating system.

Jim Zemlin, executive director of the Linux Foundation had this to say on this declaration by SCO: “I have to say we weren’t surprised. 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.”

SCO’s stock closed at $0.37. It was down 43 percent on the bankruptcy news. Nothing seems to be going right for the company which is hated by Linux fans all around the world.