SCO gets reprieve from Nasdaq
- 29 September, 2007 19:04
The Nasdaq stock exchange has given The SCO Group a little more time to get its financial house in order.
The Lindon, Utah, Unix vendor had said last week that had been set to be delisted on Thursday of this week, but that the company planned to appeal the decision, a move that would delay the delisting.
On Friday, SCO's stock (SCOX) continued to be traded on Nasdaq, and by midday Friday it was up nearly 4 percent, trading at US$0.17. When asked about the Nasdaq situation, SCO's public relations agency said it would issue a statement later on Friday.
SCO received the notice of delisting on September 18 as a result of its bankruptcy, the company said.
The bankruptcy filing followed a major legal setback dealt to SCO last August. That's when a federal judge ruled that Novell and not SCO owned copyright to the Unix operating system. This decision not only undermined SCO's long-running legal dispute with IBM, but it also raised the possibility that SCO would have to pay Novell as much as $30 million in licensing fees. SCO has about $10.4 million in the bank, according to its latest financial statement.
"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 a September 18 SEC filing.