The company, which is embroiled in a legal action with both IBM and Novell over the ownership of some Unix program code, announced that Stephen Norris Capital Partners and its unnamed partners from the Middle East had agreed to provide up to $100 million in funding to finance a reorganisation plan.
As part of the financing, SNCP will take a controlling interest in the company, while taking it private. The immediate effect of the plan would be to allow SCO to emerge from bankruptcy protection.
The SCO board of director unanimously agreed the financing and plan of reorganisation was in the best long-term interest of the company, as well as its customers, shareholders, creditors and employees.
“Not only will this deal position us to emerge from Chapter 11, but it also marks an exciting future for our business,” SCO president and chief operating officer said Jeff Hunsaker said in a statement.
“This significant financial backing is positive news for SCO's customers, partners and resellers who continue to request upgrades and rely upon SCO's UNIX services to drive their business forward,” Mr Hunsaker said.
SNCP has developed a business plan for SCO that includes unveiling new product lines aimed at global customers. The reorganisation would also allow the company to see SCO's legal claims through to their full conclusion.
“We saw a tremendous investment opportunity in SCO and its vast range of products and services, including many new innovations ready or soon to be ready to be released into the marketplace,” said Stephen Norris, managing partner for SNCP.
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