SCO has been setting its briefs on anyone who uses Linux claiming that the OS uses code it owns.
The company had a boost to its legal war chest with a VC loan from BayStar. Unfortunately IT hacks uncovered a tail of woe which linked BayStar with Microsoft.
According to a letter received by SCO, BayStar charges unspecified breaches of several of the loan agreement's terms. Specifically, BayStar's reckons SCO breached "disclosures and publicity" clauses in the deal.
The part of the deal it's talking about was tacked on fairly late on in the finance negotiations to a section that dealt with a swap of types of preferred stocks BayStar received.
A SCO spokesman said that the news came as a complete surprise and the company was seeking more information as to how it breached any agreements.
BayStar now wants SCO to buy back 20,000 shares it owns in the company which will add up to $20 million of the $50 million investment BayStar initially worked out last year.
BayStar negotiated the remaining $30 million from the Royal Bank of Canada. Before the loan SCO reportedly had less than $11 million in cash on hand before the BayStar cash injection. SCO has, so far, spent millions on briefs taking on giants such as Big Blue and Novell. µ
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