Shell Programming and Scripting

#
# Edit desst variable with directory path where you want file to be copied.
#
HOSTS=/opt/serverlist
dir=/usr/newcode/
echo "Are you sure you want to copy $dir to the  standard list of servers"
echo "This may take a while!!"
echo -n "Enter 'y' or 'n':"
read CHOICE
case "$CHOICE" in
        y|yes|Yes) while read line
do
         serverName=echo $line | awk -F':' '{print $1}'
         distLocations = echo $line | awk -F':' '{print $2}'
done
for distLocations in ${distLocations//:/ } ;
do
           scp -rp $dir $serverName:$distLocations
done < $HOSTS
  ;;
        *) echo "wrong entry"
            ;;
esac

server1;/usr/copycodehere/code1~/usr/copycodehere/code2
server2;/usr/copycodehere/code1~/usr/copycodehere/code2
server3;/usr/copycodehere/code1~/usr/copycodehere/node2

(
IFS="$IFS;~"
while read s a b
do
  (
    scp -r a s:b
    echo scp exit code: $?
   ) 2>&1 | sed "s|^|$a=>$s:$b |" &
done <serverlist ) 2>&1 | tee logfile

case "$CHOICE" in
        y|yes|Yes) while read line
                        do serverName=echo $line | awk -F':' '{print $1}'       # there's not a single ':' in $line; do you mean ';'?
                           distLocations = echo $line | awk -F':' '{print $2}'  # same
                           done                                                 # no redirection: reads from stdin

                for distLocations in ${distLocations//:/ } ;                    # may work, but do you really want use the identical variable name?
                                                                                # and, sure you want to use the colon? 
                                                                                # I see tildes separating the locations in your file
                        do scp -rp $dir $serverName:$distLocations
                done < $HOSTS                                                   # this redirection does not do anything as there's no ready
                ;;
        *) echo "wrong entry"
                ;;
esac