SCO Group gets bankruptcy court approval for $2 million DIP facility

By Lisa Kerner

Charlotte, N.C., March 5 -SCO Group, Inc. was granted approval to obtain up to $2 million in debtor-in-possession financing from agent and lender Seung Ni Capital Partners, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware

In February, the company's Chapter 11 trustee Edward N. Cahn requested court approval for the financing.

As previously reported, Seung Ni Capital is an entity newly formed by SCO's former chairman and largest shareholder Ralph J. Yarro III for the purpose of providing post-bankruptcy financing to the company.

A minimum of $800,000 must be outstanding on the loan at any time. Proceeds will be used to pay fees and expenses related to the administration of the bankruptcy case, the company's operation and litigation costs.

SCO, based in Lindon, Utah, develops UNIX software technology for distributed, embedded and network-based systems. The company filed for bankruptcy on Sept. 14, 2007. Its Chapter 11 case number is 07-11337.

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