The troubled SCO Group could be soon on the receiving end of a cash injection, with a possible offer for its Unix business now on the table.
SCO is currently under Chapter 11 bankruptcy protection, following its looming defeat in intellectual property fights with Novell and IBM.
In a filing with the Bankruptcy Court in Delaware, the company said it has received a "potential" $36 million offer for its Unix business from JGD Management, an umbrella business of New York-based investment firm York Capital Management.
The filing has been posted on the GrokLaw.com website, which has been tracking the ongoing lawsuits between SCO, IBM, Novell and others. In it, SCO reports that the offer includes money for its Unix business, litigation claims and for litigation expenses.
The bid is subject to approval by the bankruptcy court, according to the filing, and competitive bids could still be accepted from other potential buyers.
SCO filed for Chapter 11 bankruptcy protection last month as it began seeking ways to stay in business amid mounting expenses and several legal rulings that have hurt its legal fights with IBM and Novell.
If SCO gets out of the Unix business, it would continue solely as a mobile application platform vendor, which it has been working to become over the last several years.
A SCO spokesman could not be reached for comment about the buy-out offer. A spokesman for York Capital Management declined to comment on the matter.
Three weeks ago, SCO CEO Darl McBride said his company would try to remain a viable business, despite the death knells sounded by some critics.
According to the terms of the York offer, approval of the deal is required from the bankruptcy court by 9 November, with the transaction needing to be completed by 7 December.