SCO Group seeks court OK to sell UNIX business, other units to unXis

By Jennifer Lanning Drey

Portland, Ore., June 23 - The SCO Group, Inc. requested court approval of the proposed private sale of its UNIX business and some of its subsidiary companies to unXis, Inc., according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The purchase price is $2.4 million, plus unXis will post a letter of credit for the benefit of Novell, Inc. that will be used, if necessary, to contribute to the full payment of the judgment against SCO arising from pending litigation.

Under the proposed agreement, SCO will retain certain mobility applications, cash, accounts receivable and litigation and a series of copyright infringement claims.

SCO said it did not intend to hold an auction for the assets. However, if the court mandates an auction and unXis is not the high bidder, SCO will pay a 4% break-up fee.

A hearing is scheduled for July 27.

SCO, based in Lindon, Utah, develops UNIX software technology for distributed, embedded and network-based systems. The company filed for bankruptcy on Sept. 14, 2007. Its Chapter 11 case number is 07-11337.

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