The news that the SCO Group has filed for Chapter 7 bankruptcy strikes a sweet note in the history of the Linux operating system, but reminds us of the unfortunate precedent they set for Linux.
In the U.S., Chapter 7 bankruptcy represents total liquidation of assets, as opposed to Chapter 11, which is what SCO had been under. In Chapter 11, it’s about re-organizing what you have so you can come back later. But with zero revenue, mounting debt, and the “absence of a reasonable likelihood of rehabilitation,” SCO (now known as the slightly recursive The TSG Group) filed their papers for Chapter 7 on Monday.