More on BayStar Request for SCO
Apr 16, 2004, 20:45 (55 Talkback[s])
(Other stories by Stephen Shankland)
SCO: BayStar Requests Redemption of 20,000 Stock Shares
[ Thanks to brewerlinux for this link.
"The SCO Group, Inc., the owner of the UNIX operating system,
received a letter on April 15, 2004 from BayStar Capital II, L.P.
requesting that SCO immediately redeem BayStar's 20,000 shares of
SCO's Series A-1 Convertible Preferred Stock.
"The letter asserts that BayStar is entitled to the redemption
of its shares under Article VII.A(vii) of the Certificate of
Designation, Preferences and Rights of the Series A-1 Convertible
Preferred Stock because SCO has allegedly breached Sections
2(b)(v), 2(b)(viii), 2(b)(viii) and 3(g) of the Exchange Agreement
dated February 5 2004 among SCO, BayStar and Royal Bank of Canada,
which also holds shares SCO's Series A-1 Convertible Preferred
CNET News: BayStar Seeks to Retrieve Investment in SCO
"BayStar Capital is seeking to get back the $20 million it
invested in the SCO Group, raising issues for SCO's expensive and
controversial legal campaign that argues Linux infringes its Unix
"The move means at a minimum that SCO has more legal wrangling
in its future, but it also raises the possibility that the Royal
Bank of Canada, which chipped in $30 million alongside BayStar's
investment in October, could follow suit..."