With bankruptcy, SCO now facing Nasdaq delisting

With bankruptcy, SCO now facing Nasdaq delisting

Nasdaq threatens to delist now-officially bankrupt SCO Group next Thursday

Following its bankruptcy filing, The SCO Group may be booted off of the Nasdaq stock exchange as early as next week.

The stock exchange told SCO in a shareholder release this week that "the Company's securities will be delisted from Nasdaq on September 27, 2007, pending an appeal".

The SCO Group has just filed for Chapter 11 bankruptcy protection.

SCO has asked for a hearing to appeal the decision, so it may be able to stave off delisting if it can present the Nasdaq's Listing Qualifications Panel -- a group of independent industry experts -- with a viable business plan, said Wayne Lee, a Nasdaq spokesman.

The delisting notice is the latest bad news for the company, stemming from its August 10 legal defeat by Novell. In a series of rulings, a federal judge found that Novell and not SCO owned copyright to the Unix operating system.

As well as putting SCO in a position where it may have to pay millions of dollars in compensation to Novell, the ruling also undermined SCO's legal battle with IBM, which relates to IBM's support of the Linux operating system.

"As a result of both the Court's August 10, 2007, ruling and the Company's entry into Chapter 11, there is substantial doubt about the Company's ability to continue as a growing concern," SCO said in its most recent US Securities and Exchange Commission filing.

SCO's stock (SCOX) has been pounded since August 10, when it opened at US$1.49. On Wednesday it closed at US$0.20.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

Show Comments