It turns out that others, who know far more about the law than I do (I am not a lawyer, and don’t give legal advice) are suggesting that chapter 11 is less likely. They did a similar analysis, though with more legal detail. Worth the read.
The punchline is that someone may have advised them that this was a good idea, and that an external analysis seems to show that this plan was a very bad one for SCO. If SCO wanted to remain an independent, potentially viable organization, it should have stopped the lawsuits the moment it lost the decision on copyrights.
That fight is over. There is no money to pursue it. And with the apparently illegal conversion of money to pay lawyers to fight having to pay what they owed, well, … there is a new dimension to this. The suggested additional conversion would be highly problematic, as proposed.
This went from a bad situation for them to a terminal situation.
I will be surprised if they last 6 months. Or one month.
The HPC linkage has to do with two of their backers having, well, issues with Linux, and leveraging this ‘lawsuit’ as FUD. Yes, I had spoken to a large customer that pointed to this as a potential risk for them, as to why they did not wish to deploy Linux.