The SCO Group is seeking U.S. Bankruptcy Court approval to sell its Unix business to a New York investment management firm for $36 million, according to documents filed today with the U.S. Securities and Exchange Commission.

The Lindon company said it sought court approval on Tuesday for an agreement it entered into with JGD Management Corp. doing business as New York-based investment firm York Capital Management LLC, to sell "substantially all assets used by (SCO) in connection with its Unix business and certain related claims in litigation." The offer also includes up to $10 million in funding for SCO's litigation expenses.

According to the filing, competitive bids could still be accepted from other potential buyers.

Mark Schein, York's chief compliance officer, declined to comment on the offer.

The offer from York comes on the heels of efforts by Novell to lift a bankruptcy stay on litigation against SCO over intellectual property rights to Unix. SCO, which had been embroiled in a four-year legal battle against the Waltham, Mass. software company, filed Chapter 11 bankruptcy on the eve of a five-day trial that would have wrapped up the remainder of the lawsuit.

The trial, which was to have been held Sept. 17, would have examined whether SCO had the authority to collect the Unix license fees and what portion of fees it collected and retained from Microsoft and Sun Microsystems and other Linux customers should be returned to Novell.

Novell wants the bankruptcy stay lifted so a federal court trial in Utah can proceed to determine the amount of Unix licensing fees Novell is entitled to, and for a constructive trust to be put in place to protect those funds. SCO CEO Darl McBride said in bankruptcy court papers that Novell has claimed the licensing fees could amount to more than $37 million plus interest.