Re: BayStar asks money back from SCO, SCO share 30% down.
From: Yousuf Khan (news.tally.bbbl67_at_spamgourmet.com)
Date: Mon, 26 Apr 2004 11:40:04 GMT
Rob Stow wrote:
> Yousuf Khan wrote:
>> According to this,
>> http://www.theregister.co.uk/2004/04/22/repellent_sco/ , Baystar is
>> starting to get nervous about McBride's big mouth, and they are
>> saying that they should just concentrate on the lawsuit. Or is that
>> really an excuse? It could be an implied acknowledgement of pending
>> defeat, and they are trying to get back whatever money they can
>> recover from SCO while they can.
> I would assume that Baystar had some SCO stock and did not
> simply loan them some money. If that is actually the case,
> they might have been better off quietly bowing out and simply
> selling off their stock. As it is, they made headlines instead
> and SCO's stock fell 30%. (Has it recovered since then ?)
I think Baystar is too smart to have owned only SCO stock, the real money is
in being a creditor. Afterall, when a company goes bankrupt it's the
creditors that get to pick over the corpse, not the shareholders. In this
case, it's recalling a loan to SCO, not selling off its stock.