SCO Reorganizes its Reorganization Plan

SCO turned up in bankruptcy court the other day to say that it was withdrawing its latest reorganization plan – the one where a mystery Arab moneybags was going to put $100 million at its disposal – and submit another one that has the same mystery Arab moneybags pumping even more money into SCO.

According to what SCO told us, and has yet to detail to the court because they’re still working on it, it’s a result of the due diligence.

Things are supposedly looking even brighter than before.

The new plan abandons the idea of giving SCO a $95 million line of credit to draw on to chase its legal anti-Linux ambitions against Novell and IBM et al and substitutes a straight infusion in support of its Unix and mobile interests as well as its myriad court cases – and no matter what they tell the bankruptcy court on or about May 11 when they file the new plan you should probably consider that legal fund a blank check.

They want blood drawn and heads to roll.

One of SCO’s many critics, Al Petrosky, who was at the short 20-minute hearing, reminded us to tell you that Stephen Norris, the co-founder of the Carlyle Group and more recently Norris Capital Partners, the billionaire facilitator behind the deal, is himself a lawyer – and besides all the legal talent he can buy – should be able to appraise SCO’s case himself.

Oh, yes, IBM and Novell object to this and that.