SCO reorganization plan includes new CEO, board
The change in management was among elements in a 69-page reorganization plan filed Friday with the U.S. Bankruptcy Court in Delaware. The plan calls for McBride to be replaced by a new CEO to be named by the Lindon-based company's board of directors when the plan becomes effective. The plan also contains provisions to pay creditors' claims.
The court, which must approve the plan, has scheduled a hearing on the matter for April 2.
As announced by the company Feb. 14, Stephen Norris Capital Partners has committed to provide up to $100 million to finance the reorganization plan and take the company private. SNCP is the investment vehicle formed by Stephen Norris & Co. Capital Partners LP for the transaction.
In a news release Tuesday, SCO said the court-filed plan allows it to focus its efforts on the development, sales and support of its Unix and mobile technologies.
"This is an important milestone in emerging from Chapter 11 bankruptcy," said Jeff Hunsaker, president and chief operating officer of SCO Operations.
SCO filed for Chapter 11 bankruptcy in September. The company has been in litigation with Novell Inc. about ownership of Unix copyrights and with International Business Machines Corp. about alleged misappropriation of Unix source code into Linux, an "open source" operating system whose code is freely shared.
A federal judge in August ruled that Novell owned the Unix copyrights. Novell, a seller of Linux software, had contended that SCO did not have the right to demand royalties from IBM or other Linux users. The bankruptcy judge ruled in January that SCO must instead defend itself against Novell at a trial in April to decide how much it owes Novell in royalties.
In a statement Tuesday, Stephen Norris, managing partner for Stephen Norris Capital Partners, said the 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."
Norris co-partner Mark Robbins said SCO has a solid customer base of industry leaders.
"We have a firm belief in SCO's technology platform and its potential to be expanded especially outside of the United States," he said. "This plan provides the necessary direction and strategy to begin moving in a positive direction."
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