Novell has filed a motion for summary judgement against SCO, claiming the Santa Cruz-based firm is on the verge of bankruptcy.
This move is the latest in the ongoing saga that started in 2003 when SCO started a $1-billion action against IBM for allegedly infringing its intellectual property rights in Unix.
Novell then argued it was, in fact, the rightful owner of Unix and was also sued by SCO.
Now, Novell is claiming that, in terms of the purchase agreement when SCO bought Unix from Novell, SCO needs to pay over $26-million in licensing fees collected from Sun Microsystems and Microsoft.
The latest filing claims that Novell would be irreparably damaged if it fails to collect the funds.
It further claims that "for SCO, bankruptcy is inevitable" and asks the court to help secure the $26-million in Novell's favour.
An SCO spokesman has refuted claims that the company is financially insecure, saying the Novell claims are patently false.
SCO will release its fourth quarter financial results on 17 January.
The company has been active on the product front over the last few months, releasing a number of new offerings.