Such financial issues make the claim even more urgent, Novell says in its filing.

"Contrary to SCO's assertion that a preliminary injunction should be denied because it may accelerate SCO's bankruptcy, SCO's imminent bankruptcy is a compelling reason to grant Novell's motion," Novell's attorneys write in the filing. "When SCO goes into bankruptcy, it will not be because of Novell's motion, but because of its own financial missteps. For SCO, bankruptcy is inevitable; it characterizes its assets as merely those 'remaining' and does not rebut Novell's arguments that its bankruptcy is imminent."

SCO spokesman Blake Stowell denies that SCO is in dire straits.

"We will report our fourth quarter financials on Jan. 17 and give an update at that time," he says. "We consider it irresponsible of Novell's lawyers to mischaracterize our financial well-being with these false statements."