April 17, 2004

Bay Star demands a $20 million dollar loan repayment from SCO

From The Salt Lake Tribune...

In a potentially crippling blow to The SCO Group, BayStar Capital is calling due its $20 million loan to the controversial Utah software company.

Stunned SCO officials were scrambling Friday to get BayStar's explanation for the decision, declared in a letter to Lindon-based SCO late Thursday.

In the letter, BayStar charges unspecified breaches of several of the loan agreement's terms.
   
"This came as a surprise to us," SCO spokesman Blake Stowell said. "We are seeking more info from BayStar on exactly how they feel we breached the agreement.

...

The news sent SCO's stock tumbling 13 percent Friday. By the close of the Nasdaq Stock Market, SCO stock was going for $8.37 per share, down $1.29.

BayStar's letter claims otherwise unspecified violations involving sections of the agreement addressing SCO-related disclosures and publicity over a February 2004 addendum to the loan deal.

Posted by joy at April 17, 2004 07:10 PM | TrackBack
Comments

It might just be me, but that house of cards seems to be getting very shaky indeed.

Posted by: Iain at April 17, 2004 07:25 PM

Awww poor SCO.

Posted by: dianna at April 18, 2004 04:27 PM

This fills me with glee, for I shorted this stock.

Posted by: ucblockhead at April 18, 2004 05:55 PM

Heh.

"But they won't tell us exactly what we've done wrong!"

I'm giggling as I'm typing this.

Karma.

Posted by: hulver at April 19, 2004 05:37 AM