Here's the press release. They still call themselves "a leading provider of UNIX® software technology and mobile services". That isn't what they just told the bankruptcy court, but who's counting? So they say they got a delisting letter saying they'll be delisted as of September 27. This is the interesting part:
The Nasdaq Staff Determination Letter received on September 18, 2007 indicated that as a result of the Company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Staff has determined, using its discretionary authority under Nasdaq Marketplace Rules 4300 and IM-4300, that the Company's securities will be delisted from The Nasdaq Stock Market and that trading in the Company's common stock will be suspended unless the Company requests a hearing to review the determination.
Discretionary authority? Nice. Everyone is sick of SCO, I think. Except SCO. They can't get enough of this, and they say they're appealing. Or is that appalling? I'll let you be the judge. Here's what they just filed with the SEC:
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On September 13, 2007, the Board of Directors (the "Board") of The SCO Group, Inc. (the "Company"), approved an increase in the base salary of Ryan E. Tibbitts. Mr. Tibbitts' base salary will be increased from $160,000 per year to $210,000 per year, effective as of September 3, 2007. In recognition of the significant contributions Mr. Tibbitts has made to the Company, the Board also approved a discretionary bonus of $50,000, net of taxes, to be paid to Mr. Tibbitts.
Discretionary bonus and a raise. $50,000 net. SCO is in bankruptcy, dudes, and you are giving raises? Note the date? That would be the day before they filed for bankruptcy and the very day the Board of Directors resolved to file. Clever, no? Methinks Novell will never see a penny, at this rate. And SCO has asked the court [PDF] to let it pay all "prepetition wages, salaries, commissions, employee benefits and other compensation". Other would seem to cover a bonus. They are amazing. Mr. Tibbitts is their General Counsel, by the way. A bonus. It must not be a bonus under the incentive plan, though, that they are asking the court to let them pay, because SCO told the court in its filing, page 4, that the total they'd like to pay under that plan, covering November 1, 2006 to October of 2007, was $30,000. So that's another $30,000 on top of the $50,000 to Tibbitts, which I don't see mentioned at all. It's been already paid, of course, so that's likely why. The $30,000 is to be paid, if the court agrees. So, another $80,000 thrown into the don't-let-Novell-get-anything-volcano, as I call it. Speaking of which, remember the new subsidiary, Cattleback Holdings, SCO listed? I don't know for sure if this is it, but here's a Delaware corporation [PDF] that might match up, Cattleback Intellectual Property Holdings, incorporated in Delaware in July. I'd have to spend $20 to find out more, and not being incentivized, so to speak, I'll let others foot that bill.
When they announced their bankruptcy filing, they said it would allow them to continue business as usual. I believe we have some insight now into what they mean. Look for this to come up in the next bankruptcy hearing in October. And there will be the annual shareholders' meeting on April 26, 2007 at the Provo Marriott Hotel. That would be a laugh riot if they held it now. If I were a shareholder, here's what I would ask: "If you saw that the marketplace prefers Linux, why didn't you go back to selling it so my shares could have some value?" And: "When will we get new management to get us out of this trough we're in?" You only get to vote on the 7 members on the board if you had stock as of February 27, 2007.
The SCO Group Receives Nasdaq Notice Letter
Wednesday September 19, 5:08 pm ET
Intends to appeal according to Nasdaq Marketplace Rule 4800 Series
LINDON, Utah, Sept. 19 /PRNewswire-FirstCall/ -- The SCO Group, Inc. (the "Company") (Nasdaq: SCOX - News), a leading provider of UNIX® software technology and mobile services, today announced it received a notice from The Nasdaq Stock Market indicating that the Company's securities will be delisted from Nasdaq on September 27, 2007, pending an appeal.
The Nasdaq Staff Determination Letter received on September 18, 2007 indicated that as a result of the Company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Staff has determined, using its discretionary authority under Nasdaq Marketplace Rules 4300 and IM-4300, that the Company's securities will be delisted from The Nasdaq Stock Market and that trading in the Company's common stock will be suspended unless the Company requests a hearing to review the determination. Pursuant to Nasdaq Marketplace Rule 4804(b), the Company is making a public announcement disclosing receipt of the letter.
The suspension of the Company's common stock is currently set to occur at the opening of business on September 27, 2007. However, an appeal will stay the suspension of the trading of the Company's securities pending a panel decision by a Nasdaq Listing Qualifications Panel. The Company intends to request a hearing to review the determination. There can be no assurance that the panel will grant the Company's request for continued listing.
The SCO Group (Nasdaq: SCOX - News) is a leading provider of UNIX software technology and mobile services. SCO offers UnixWare for enterprise applications and SCO OpenServer for small to medium businesses. SCO's highly innovative and reliable solutions help customers grow their businesses everyday, especially into the emerging mobile market. SCO owns the core UNIX operating system, originally developed by AT&T/Bell Labs and is the exclusive licensor to UNIX-based system software providers. The Me Inc., product line focuses on creating mobile platforms, services and solutions for businesses and enhances the productivity of mobile workers.
Headquartered in Lindon, Utah, SCO has a worldwide network of thousands of resellers and developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.
SCO and the associated logos are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries.
Forward Looking Statements
The statements contained in this press release regarding the Company's intention to request a hearing before a Nasdaq Listing Qualifications Panel are forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks and uncertainties. We wish to advise readers that a number of important factors could cause actual results to differ materially from historical results or those anticipated in such forward-looking statements. These factors include, but are not limited to, outcomes and developments of our Chapter 11 case, court rulings in our bankruptcy proceedings, the impact of the bankruptcy proceedings on our other pending litigation, and our cash balances and available cash. These and other factors that could cause actual results to differ materially from those anticipated are discussed in more detail in the Company's periodic and current filings with the Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended October 31, 2006 and Forms 10-Q for the fiscal quarters ended January 31, 2007, April 30, 2007 and July 31, 2007, and future filings with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date.