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sbs.out can only be managed using logrotate: it's a dump of the stdout of the Jive application.
If you want to rotate sbs.out, you could use a logrotate configuration along the following lines (feel free to change the values for size and rotate):
Your application server will need a restart in order for this to take effect.
Hope this helps.
It turns out that in our setup your logrotate.conf file was ignored.
Nevertheless thank you for the snippet it helped me identifying and fixing the actual issue.