Baystar Demands SCO Money Back

By Deane Barker on April 21, 2004

Possibly hurting SCO, investor unexpectedly calls loans: This may be the beginning of the end for SCO. One of their major investors has asked for $20 million of their money back.

In a letter to SCO on Thursday, Larkspur, Calif.-based BayStar Capital cited unspecified breaches of the loan’s terms in calling the loans. The move is a potentially crippling blow for SCO, which is embroiled in several lengthy and expensive court cases.

Gadgetopia

Comments

  1. In a NY Times article today, the CEO of BayStar explains why they asked for the money back:

    “Mr. Goldfarb described a company that had become too engaged in publicity and debate with the passionate advocates of the free Linux operating system. SCO’s management, he said, was traveling too much and spending too much when it should have been concentrating its efforts and resources on its legal strategy. […]

    The public statements from Darl McBride, SCO’s chief executive, were too frequent and too grand for BayStar’s liking.”

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