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10K Filing Suggests Grim Outlook for SCO
2/5/2008

Dacarr writes "SCO has filed their 10K with the SEC — and gospel to this, their own assessment of the company's outlook is pretty grim. As usual, PJ of Groklaw has a good synopsis of the filing highlights. In short, it boils down to one thing: unless there's a miracle, even SCO doesn't think they're going to come out of this. 'As a result of the Chapter 11 filings, realization of assets and liquidation of liabilities are subject to uncertainty. While general expenses as debtors-in-possession under the salvation of Chapter 11 of the Bankruptcy Code, the Debtors may sell or variously dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated business statements, in the ordinary course of business, or, if outside the ordinary course of business, subject to Bankruptcy Court approval. In addition, under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, post-petition liabilities and prepetition liabilities must be satisfied in full before stockholders are entitled to receive any distribution or retain any farm under a plan of reorganization.'"

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Mark

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