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SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Monday, September 17 2007 @ 05:27 AM EDT

SCO has petitioned the Bankruptcy Court in Delaware to be allowed to hire temps to do its accounting, "to assist the Debtors prepare for the Debtors' fiscal year end as well as other matters". SCO had seven people in the finance department, but after SCO filed for bankruptcy, "approximately half of the accounting personnel resigned or were terminated, including the resignation of two accounting personnel, each with over ten years' experience..."

PACER:
09/16/2007 14 Motion to Authorize Motion of the Debtors for Authorization to Employ and Compensate Temporary Employees Filed by The SCO Group, Inc.. Hearing scheduled for 9/18/2007 at 09:15 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Attachments: # 1 Proposed Form of Order) (O'Neill, James) (Entered: 09/16/2007)

So, the folks with the deepest knowledge of what happened are now disappeared? In a manner of speaking. If I were Novell, those are the very people I'd most want to talk with. By the way, the date indicates the lawyers were working on Sunday on this.


  


SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit | 243 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections Here
Authored by: feldegast on Monday, September 17 2007 @ 08:01 AM EDT
so they can be fixed

---
IANAL
My posts are ©2004-2007 and released under the Creative Commons License
Attribution-Noncommercial 2.0
P.J. has permission for commercial use.

[ Reply to This | # ]

OT, the Off topic thread
Authored by: Erwan on Monday, September 17 2007 @ 08:04 AM EDT
As usual. Some like clickies.

---
Erwan

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Jamis on Monday, September 17 2007 @ 08:09 AM EDT
"If I were Novell, those are the very people I'd most want to talk
with."

Especially the ones that were fired.

[ Reply to This | # ]

Stop them!
Authored by: Anonymous on Monday, September 17 2007 @ 08:10 AM EDT
They're getting away! Police officer! Stop or I'll fire!

[ Reply to This | # ]

Hire Chris Sontag
Authored by: Anonymous on Monday, September 17 2007 @ 08:10 AM EDT
What about having Chris Sontag read up some accounting manuals and hiring him?

[ Reply to This | # ]

Take da money and run ...
Authored by: Anonymous on Monday, September 17 2007 @ 08:21 AM EDT
Hmm, which ones are more interesting to Novell: The ones that quit by
themselves, or the ones that got fired ?

Toon Moene (not logged in while at "work").

[ Reply to This | # ]

"Approximately half"
Authored by: jmc on Monday, September 17 2007 @ 08:22 AM EDT
So they've got 7 employees and "approximately half" have left.

Is that 3 or 4? Why not say? Or maybe some are like Strephon in Iolanthe?

[ Reply to This | # ]

Something tells me
Authored by: Anonymous on Monday, September 17 2007 @ 08:29 AM EDT
I wouldn't want to be one of those temps. I suspect that will not be a fun job, whatever they are going to have to do.

If nothing else, You can bet that moral around the office will be less than cheery.

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 08:34 AM EDT
SCO had seven people in the finance department, but after SCO filed for
bankruptcy, "approximately half of the accounting personnel resigned or
were terminated, including the resignation of two accounting personnel, each
with over ten years' experience..." PACER:

Approximately 1/2 of 7 is 3 or 4.

2 Resigned or Quit

That leavs 1 or 2 that were fired.

Q) Is that 1 or 2?
Q) Was at least 1 more senior in position than the 2 who resigned?

[ Reply to This | # ]

This so smells of crime and coruption .
Authored by: waltish on Monday, September 17 2007 @ 08:41 AM EDT
Its got to be a dead give away that something is indeed rotten
at SCO.

Fee capped Lawers working on Sunday, Accountants being sacked or retiring , who
knows if they quit or were told to quit.

The SCOery gets more rancid by the minute.

---
" You can fool some of the people all of the Time
And all of the people some of the time
But you cant fool All of the people All of the Time."



[ Reply to This | # ]

Microsoft loses anti-trust appeal
Authored by: Anonymous on Monday, September 17 2007 @ 08:45 AM EDT
BBC
Microsoft loses anti-trust appeal
http://news.bbc.co.uk/2/hi/business/6998272.stm

Microsoft has lost its appeal against a record 497m euro (343m; $690m) fine
imposed by the European Commission in a long-running competition dispute.

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 08:48 AM EDT
How would you like your documents, shredded, burned, or
buried?


[ Reply to This | # ]

SCOX 10Q that *was* due Friday
Authored by: Anonymous on Monday, September 17 2007 @ 08:55 AM EDT
Nobody willing to sign it.
I hear that they have till the close of business today to
file for an extension.
NASDAQ (and everybody else) is waiting :-)

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: ThrPilgrim on Monday, September 17 2007 @ 09:02 AM EDT
Humm... Don't you have to give notice when you fire someone, unless its for
grose miscompitence.

And don't you have to give notice when you resign.

There may be a couple of unlawfull dismissal cases pending.

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 09:08 AM EDT
they also anticipate 'additional employees will resign or be terminated' .i
assume they're talking the finance dept. if so it seems that just about the
eentire dept has or will be jumping ship or thrown overboard

[ Reply to This | # ]

Who is going to take the fall?
Authored by: Anonymous on Monday, September 17 2007 @ 09:21 AM EDT
My guess is that everyone involve is going to get a case of the
"Enderlies," oh that I haven't followed it for years.

The interesting thing will be who gives up who first to save their own skin.
None of the cast we have met so far seem the type to go down with the ship. So
the finger pointing is going to start pretty soon. Tuesday is going to be
interesting to say the least.

[ Reply to This | # ]

Think big
Authored by: justjeff on Monday, September 17 2007 @ 09:27 AM EDT
It is clear that most of us are not thinking big. We're not thinking "out
of the box." This is just another path to riches that the rest of us
didn't think of.

Our 20/20 hindsight has revealed that a lot of SCO's efforts have been to get
rich quick. The original plan might have been to impose a "Linux
Tax." Well, that didn't work out too well. Plan B was to pump the stock.
That worked reasonably well, for a while. Plan C is clearly to get as much of
Microsoft's and Sun's money into their own (and their friends') pockets.
Quickly.

One way to do that is to hire your friend's law firm. I'm assuming that the fee
cap only covered IBM, Novell, Red Hat, Autozone and Chrysler, and not this new
legal effort. Another way to move a lot of money is to fire your staff and
replace them with your expensive friends.

Only existing debt is frozen in Chapter 11 reorganization. Ongoing operations
and NEW debts are paid out in a timely manner - as approved by the trustee.
These new expenses will drain SCO's bank account, while they simultaneously
negotiate how to divvy up their ever diminishing cash.

At least until the cash runs out. With no cash, SCO operation ceases and moves
into Chapter 7 liquidation. All the employees that remain are sent home. After
that, the court can sell off assets for whatever they can get. It will likely
not be the value SCO keeps on its books. Then, everyone will be happy. SCO
will be a smoking hole in the ground. Novell will have its UNIX back (Though
none of M$ or Sun's money. But its just as well, they were not really buying
UNIX and would not have given Novell any money anyway in other circumstances.)
And SCO bigwigs and their friends will drift off into the sunset, smiling all
the way.


[ Reply to This | # ]

  • Think big - Authored by: Anonymous on Monday, September 17 2007 @ 09:51 AM EDT
    • Think big - Authored by: Anonymous on Monday, September 17 2007 @ 10:39 AM EDT
      • Think big - Authored by: Anonymous on Monday, September 17 2007 @ 10:44 AM EDT
        • Think big - Authored by: Anonymous on Monday, September 17 2007 @ 01:35 PM EDT
    • Think big - Authored by: Anonymous on Monday, September 17 2007 @ 11:38 AM EDT
  • Think big - Authored by: ThrPilgrim on Monday, September 17 2007 @ 12:33 PM EDT
Do I hear another lawsuit coming?
Authored by: bstone on Monday, September 17 2007 @ 09:30 AM EDT
I wonder what reasoning SCO used to terminate at least one accountant (and to be
planning on terminating at least one more). I'll bet the terminated employees
will have grounds to sue, and I'd really love to see them let the rest of the
world in on it.

[ Reply to This | # ]

SCOX hiring procedure - Accountants
Authored by: lordshipmayhem on Monday, September 17 2007 @ 09:33 AM EDT
Darl is interviewing for temp accountants.

Darl: What is 2+2?
Candidate #1: Four!!

Darl: What is 2+2?
Candidate #2: It could be four, it could be twenty-two (22)

Darl: What is 2+2?
Candidate #3 runs over to the windows and closes the blinds, checks that there's
nobody listening at the hallway door, and whispers in Darl's ear: "What do
you WANT it to be?"
Darl: You're hired!!

[ Reply to This | # ]

A question of timing
Authored by: Anonymous on Monday, September 17 2007 @ 09:52 AM EDT
Have I got this right?

The staff quit or were fired after the bankruptcy was filed. If they sue for wrongful dismissal or constructive dismissal , the bankruptcy doesn't protect against the debt thus created.

The reason I mention constructive dismissal is that employee s can sue even if they weren't fired and seem to have quit voluntarily. Thus it is possible that everyone who left has a claim.

[ Reply to This | # ]

Can the people let go be supoenaed(sp)?
Authored by: itchytweed on Monday, September 17 2007 @ 10:06 AM EDT
Can Novell get their hands on the laid off/fired accounting people to help out
with the "equitable monetary solution"? Since they were party to the
suit, indirectly, this could help out or are they protected by "corporate
entity"?

-- Itchytweed

[ Reply to This | # ]

Accounting Temps *creditor*
Authored by: Anonymous on Monday, September 17 2007 @ 10:30 AM EDT
Account temps is a creditor.
Could this be something as simple as a temp worker? Like, if I owed K-Force
$1000 for work a contractor did, would they be a "creditor"?

[ Reply to This | # ]

Carte Blanche for payouts
Authored by: Anonymous on Monday, September 17 2007 @ 10:51 AM EDT
Notice the wording at Para 17. "The Debtors anticipate that their needs
may rise and seek approval to hire and pay all associated costs with the
retention of additional temporary employees." If the court approves that
wording, SCO can pay "temporary" employees absolutely anything at any
time, no questions asked. So hire so-and-so for a $million/day.

[ Reply to This | # ]

Maybe they didn't like all the last minute shredding?
Authored by: Anonymous on Monday, September 17 2007 @ 11:02 AM EDT
Perhaps the quitting was about ethical issues related to a shred-fest?

J

[ Reply to This | # ]

What did those accountants know?
Authored by: Peter Baker on Monday, September 17 2007 @ 12:27 PM EDT
I'd be interested to see how they were laid off. Costs, termination clauses
etc.

I presume it can't be that hard to ensure those people are tracked down and
interviewed? If they ARE hard to track down I would suggest it may be worth the
effort.

If you're heading for a normal bankruptcy I could imagine this to be quite an
expected event, but nothing about this case has been normal - there has been a
lot of stretching the rules.

It just makes me wonder if this is a Darl equivalent of Enron Arthur Anderson
shredding which may or may not involve a certain monopoly which just had its
behaviour handed to them on a plate abroad.

It's all theory, of course, but if there's one thing that's been clear is that
there are no coincidences in this saga. This has been a dirty business war
IMHO. I can't for one moment believe they main players would change their MO of
basically ignoring the rule book altogether - after all, they've been getting
away with it for years, recent events notwithstanding.



---
= P =

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: ian.waring on Monday, September 17 2007 @ 12:37 PM EDT
I still don't understand how SCO can even queue up at a Bankruptcy Court if
their assets far outstrip their liabilities - unless they've already provisioned
them in accounts to be sent to Nasdaq. However, I though that was Judge
Kimball's call on the amount.

Anyone taking odds on the case being sent back to Utah today?

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 12:41 PM EDT
If I were Novell, those are the very people I'd most want to talk with. They're available for hire.

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 01:17 PM EDT
Perhaps they let the old accounting staff go for the terrible job they did
producing the list of creditors on their bankruptcy filing. I'm not in a
position to check other entries, but the address and phone number listed for
Intel has so many errors ...

1) City is wrong ... should be Santa Clara, not Santa Monica
2) Mailstop says "SC4", which is a building at 2625 Walsh Road, not at
2200 Mission College Blvd (that is the street address of the Robert Noyce
Building ... which uses "RNB" for mailstop addresses).
3) The zip code for SC4 is 95051, the zip code for RNB is 95054 ... neither
match the 95052 listed in the filing.
4) The mailstop SC4-210 is in a plausible format, but does not actually exist.
5) The phone number listed is a real Intel phone number, but belongs to someone
in a department that is unlikely to have had dealings with SCO

A suspicious person might think that they were not trying very hard to give
Intel the $25,302.11 they say they owe them

[ Reply to This | # ]

Subpoenas / depositions
Authored by: cmc on Monday, September 17 2007 @ 01:20 PM EDT
If Novell were somehow able to question SCO (ex-)employees about the books,
would they be able to subpoena/depose the employees who are no longer employed
by SCO, or would they only be able to question those still employed? If only
those still employed, this would seem like a great way to make sure they can't
find out the truth. Fire the people or let them quit, pay them to not talk to
Novell or anyone else, and you're good to go. I certainly hope that's not what
happened, but it does seem just a bit too coincidental.

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 01:41 PM EDT
I have it on very good authority that the accounting people are with the MIT
deep divers

[ Reply to This | # ]

Chumming the Waters Time for the Shark Bait...errr...SCO Accountants to protect themselves
Authored by: David Dudek on Monday, September 17 2007 @ 02:01 PM EDT
It is time for the thoses recently designated chum, scapegoats... errr... employees who resigned or were terminated to start protecting themselves. After all, this boat is sinking fast and you weren't invited into the lifeboat (or you provided your own).

I would start making some contemporaneous notes about what happened in the past week. Further information to be recorded would be what was my position in the company, what were my duties, what reasons were offered for my termination, what are the current rumors that you heard in relation to your duties and/or department (who, what, where, when, and why).

This could either be a confession (not good) or it could help keep you out of trouble (good).

---
David Dudek

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: blacklight on Monday, September 17 2007 @ 02:18 PM EDT
How does SCOG like its books cooked?

crispy
extra-crispy
deep fried

Most likely: refried, because the earnings will need to be restated. Hello,
bathroom (or loo)! And don't even think of going into SCOG's executive bathroom
without air freshener.

---
Know your enemies well, because that's the only way you are going to defeat
them. And know your friends even better, just in case they become your enemies.

[ Reply to This | # ]

TERMINATED or terminated (n/t)
Authored by: mtew on Monday, September 17 2007 @ 02:28 PM EDT
n/t

---
MTEW

[ Reply to This | # ]

The SCO Accounting Halves and Halve Nots
Authored by: webster on Monday, September 17 2007 @ 03:20 PM EDT
..
There seems to be a function of division on the SCO accounting staff. Given the
timing it is possible that the departing half won't prepare and execute reports
as directed. The other half won't shut the FUD up.

There are issues. Perhaps some felt that the reports should reflect Court
orders, impending judgments, and reality on the ground.

---
webster


2007 Monopoly Corporation. ALL rights reserved. Yours included.

[ Reply to This | # ]

Motion for what?
Authored by: Anonymous on Monday, September 17 2007 @ 05:59 PM EDT
You can tell I'm not a programmer, it took me some time to
figure out the nested motions and authorisations...

"Motion to Authorize Motion of the Debtors for Authorization
"to Employ and Compensate ...

[ Reply to This | # ]

This looks like a fire at the office n/t
Authored by: Anonymous on Monday, September 17 2007 @ 07:09 PM EDT
.

[ Reply to This | # ]

You can tell this was written on Sunday
Authored by: The Mad Hatter r on Monday, September 17 2007 @ 08:01 PM EDT


There are a couple of really basic grammatical errors. The sort of thing that
any document should be proof read to avoid.

Curiously there is also a constant reference to the business being "their
business", which is totally untrue, since their in this case indicates
ownership, and management is not equivalent to ownership of the company.


---
Wayne

http://sourceforge.net/projects/twgs-toolkit/

[ Reply to This | # ]

To Far Away To See The Crater
Authored by: iceworm on Monday, September 17 2007 @ 08:01 PM EDT

On Friday, I felt a thud rather than heard it and assumed it was just another small quake somewhere out along the Aleutian Chain. Then I read Groklaw and realized it must have been the filing away out east. Then I noticed a change of odor that has pervaded the atmosphere for more than four years. I had quite gotten used to the somewhat rancid, essence-of-dead-cat, smell that occasionally arrived when the wind was just right, but I began to realize there was now a tinge of burnt gunpowder. Today, gazing to the south east, I think I must be seeing the top of a rising mushroom cloud. Wow!

[ Reply to This | # ]

SCO Asks Court to Let it Hire Accounting Temps - Half of its finance dept. fired or quit
Authored by: Anonymous on Monday, September 17 2007 @ 08:04 PM EDT
This little story tells a lot about what's going on inside SCO.

Ponder for a few moments what would cause half of a financial department to quit
or be fired in a day. We're talking about accountants here; the folks who know
better than Darl what the laws of this country require from corporate accounts.

Having been around for an implosion or two, I can easily imagine a wild-eyed
boss demanding that they do something or else - and half of the staff choosing
"else". Those departing are leaving the sinking ship with a mostly
clear conscience; those remaining are the ones to watch - they sold out, and
they're implicated in the creative accounting that's already started...

[ Reply to This | # ]

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