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SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankruptcy
Wednesday, September 19 2007 @ 06:22 PM EDT

Here's the press release. They still call themselves "a leading provider of UNIX® software technology and mobile services". That isn't what they just told the bankruptcy court, but who's counting? So they say they got a delisting letter saying they'll be delisted as of September 27. This is the interesting part:
The Nasdaq Staff Determination Letter received on September 18, 2007 indicated that as a result of the Company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Staff has determined, using its discretionary authority under Nasdaq Marketplace Rules 4300 and IM-4300, that the Company's securities will be delisted from The Nasdaq Stock Market and that trading in the Company's common stock will be suspended unless the Company requests a hearing to review the determination.

Discretionary authority? Nice. Everyone is sick of SCO, I think. Except SCO. They can't get enough of this, and they say they're appealing. Or is that appalling? I'll let you be the judge. Here's what they just filed with the SEC:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On September 13, 2007, the Board of Directors (the "Board") of The SCO Group, Inc. (the "Company"), approved an increase in the base salary of Ryan E. Tibbitts. Mr. Tibbitts' base salary will be increased from $160,000 per year to $210,000 per year, effective as of September 3, 2007. In recognition of the significant contributions Mr. Tibbitts has made to the Company, the Board also approved a discretionary bonus of $50,000, net of taxes, to be paid to Mr. Tibbitts.

Discretionary bonus and a raise. $50,000 net. SCO is in bankruptcy, dudes, and you are giving raises? Note the date? That would be the day before they filed for bankruptcy and the very day the Board of Directors resolved to file. Clever, no? Methinks Novell will never see a penny, at this rate. And SCO has asked the court [PDF] to let it pay all "prepetition wages, salaries, commissions, employee benefits and other compensation". Other would seem to cover a bonus. They are amazing. Mr. Tibbitts is their General Counsel, by the way. A bonus. It must not be a bonus under the incentive plan, though, that they are asking the court to let them pay, because SCO told the court in its filing, page 4, that the total they'd like to pay under that plan, covering November 1, 2006 to October of 2007, was $30,000. So that's another $30,000 on top of the $50,000 to Tibbitts, which I don't see mentioned at all. It's been already paid, of course, so that's likely why. The $30,000 is to be paid, if the court agrees. So, another $80,000 thrown into the don't-let-Novell-get-anything-volcano, as I call it. Speaking of which, remember the new subsidiary, Cattleback Holdings, SCO listed? I don't know for sure if this is it, but here's a Delaware corporation [PDF] that might match up, Cattleback Intellectual Property Holdings, incorporated in Delaware in July. I'd have to spend $20 to find out more, and not being incentivized, so to speak, I'll let others foot that bill.

When they announced their bankruptcy filing, they said it would allow them to continue business as usual. I believe we have some insight now into what they mean. Look for this to come up in the next bankruptcy hearing in October. And there will be the annual shareholders' meeting on April 26, 2007 at the Provo Marriott Hotel. That would be a laugh riot if they held it now. If I were a shareholder, here's what I would ask: "If you saw that the marketplace prefers Linux, why didn't you go back to selling it so my shares could have some value?" And: "When will we get new management to get us out of this trough we're in?" You only get to vote on the 7 members on the board if you had stock as of February 27, 2007.

**********************************

The SCO Group Receives Nasdaq Notice Letter
Wednesday September 19, 5:08 pm ET
Intends to appeal according to Nasdaq Marketplace Rule 4800 Series

LINDON, Utah, Sept. 19 /PRNewswire-FirstCall/ -- The SCO Group, Inc. (the "Company") (Nasdaq: SCOX - News), a leading provider of UNIX® software technology and mobile services, today announced it received a notice from The Nasdaq Stock Market indicating that the Company's securities will be delisted from Nasdaq on September 27, 2007, pending an appeal.

The Nasdaq Staff Determination Letter received on September 18, 2007 indicated that as a result of the Company's having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Staff has determined, using its discretionary authority under Nasdaq Marketplace Rules 4300 and IM-4300, that the Company's securities will be delisted from The Nasdaq Stock Market and that trading in the Company's common stock will be suspended unless the Company requests a hearing to review the determination. Pursuant to Nasdaq Marketplace Rule 4804(b), the Company is making a public announcement disclosing receipt of the letter.

The suspension of the Company's common stock is currently set to occur at the opening of business on September 27, 2007. However, an appeal will stay the suspension of the trading of the Company's securities pending a panel decision by a Nasdaq Listing Qualifications Panel. The Company intends to request a hearing to review the determination. There can be no assurance that the panel will grant the Company's request for continued listing.

About SCO

The SCO Group (Nasdaq: SCOX - News) is a leading provider of UNIX software technology and mobile services. SCO offers UnixWare for enterprise applications and SCO OpenServer for small to medium businesses. SCO's highly innovative and reliable solutions help customers grow their businesses everyday, especially into the emerging mobile market. SCO owns the core UNIX operating system, originally developed by AT&T/Bell Labs and is the exclusive licensor to UNIX-based system software providers. The Me Inc., product line focuses on creating mobile platforms, services and solutions for businesses and enhances the productivity of mobile workers.

Headquartered in Lindon, Utah, SCO has a worldwide network of thousands of resellers and developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.

SCO and the associated logos are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries.

Forward Looking Statements

The statements contained in this press release regarding the Company's intention to request a hearing before a Nasdaq Listing Qualifications Panel are forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks and uncertainties. We wish to advise readers that a number of important factors could cause actual results to differ materially from historical results or those anticipated in such forward-looking statements. These factors include, but are not limited to, outcomes and developments of our Chapter 11 case, court rulings in our bankruptcy proceedings, the impact of the bankruptcy proceedings on our other pending litigation, and our cash balances and available cash. These and other factors that could cause actual results to differ materially from those anticipated are discussed in more detail in the Company's periodic and current filings with the Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended October 31, 2006 and Forms 10-Q for the fiscal quarters ended January 31, 2007, April 30, 2007 and July 31, 2007, and future filings with the SEC. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date.


  


SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankruptcy | 348 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections here, please.
Authored by: myNym on Wednesday, September 19 2007 @ 06:29 PM EDT
.

[ Reply to This | # ]

Off topic here, please.
Authored by: myNym on Wednesday, September 19 2007 @ 06:30 PM EDT
.

[ Reply to This | # ]

What happens to the Sco shorts.
Authored by: Anonymous on Wednesday, September 19 2007 @ 06:32 PM EDT
LOL

[ Reply to This | # ]

Newspicks discussions here, please.
Authored by: myNym on Wednesday, September 19 2007 @ 06:32 PM EDT
.

[ Reply to This | # ]

penny stock
Authored by: Anonymous on Wednesday, September 19 2007 @ 06:35 PM EDT
Shouldn't they be automatically delisted since the stock price is waay below $1,
and has been for over 30 days?

[ Reply to This | # ]

Tibbits gets a HUGE raise, CASH
Authored by: _Arthur on Wednesday, September 19 2007 @ 06:37 PM EDT
Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers. On September 13, 2007, the Board of Directors (the "Board")
of The
SCO Group, Inc. (the "Company"), approved an increase in the base
salary of
Ryan E. Tibbitts. Mr. Tibbitts' base salary will be increased from $160,000 per

year to $210,000 per year, effective as of September 3, 2007. In recognition
of the significant contributions Mr. Tibbitts has made to the Company, the
Board also approved a discretionary bonus of $50,000, net of taxes, to be
paid to Mr. Tibbitts.

http://biz.yahoo.com/e/070919/scox8-k.html

No wonder the whole accounting Dept revolted.

[ Reply to This | # ]

Still claiming ownership of Unix
Authored by: skr95062 on Wednesday, September 19 2007 @ 06:39 PM EDT
SCO owns the core UNIX operating system, originally developed by AT&T/Bell Labs and is the exclusive licensor to UNIX-based system software providers.
I guess the longer they claim it to be true the better chance they have it becoming true. In their dreams anyway.

---
Where I work the computers
are so human, that when they
make a mistake they blame
another computer.

[ Reply to This | # ]

SCO To Appeal Delisting on Nasdaq
Authored by: dobbo on Wednesday, September 19 2007 @ 06:42 PM EDT
[T]hey'll appeal, they say. - PJ

How?

Surely this will require legal work which hasn't been paid for. As SCO no longer control how it spends it's moneys how will SCO retain the services of a lawyer if they can't gain access to the funds to pay for his time and/or services? Unless McBride (or others on SCO's board) are going to fund this out of their own pocket(s).

Dobbo

[ Reply to This | # ]

Haven't Novell et al torn SCOGs case Ti bbits?
Authored by: SirHumphrey on Wednesday, September 19 2007 @ 07:04 PM EDT
Seems SCOG wants to Tibbits remaining quantity of Novell cash down the toilet.

[ Reply to This | # ]

Bankruptcy or Integrity?
Authored by: mattflaschen on Wednesday, September 19 2007 @ 07:09 PM EDT
Perhaps it wasn't only the bankruptcy (without warning a day before the trial),
but other aspects of SCO's behavior. Rule 4300
(http://www.nasdaq.com/about/marketplacerules.pdf) says, "The Nasdaq Stock
Market stands for integrity and ethical business practices in order to enhance
investor confidence, thereby contributing to the financial health of the economy
and supporting the capital formation process."

[ Reply to This | # ]

SCO Receives Nasdaq Notice Letter, Gives Tibbits Raise and Bonus Day Before Filing for Bankruptc
Authored by: Yossarian on Wednesday, September 19 2007 @ 07:16 PM EDT
>Everyone is sick of SCO

I don't think that Nasdaq is "sick" of SCO, the issue is
pretty simple. According to
http://finance.google.com/finance?q=NASDAQ:SCOX
SCO's market is $4.29M. Nasdaq does not want to deal with
such small companies, no matter if they are "good" or
"bad",
because they take resources but don't generate much business.

[ Reply to This | # ]

Shareholders Meeting
Authored by: rickdallas on Wednesday, September 19 2007 @ 07:19 PM EDT
I am not sure about relevance of information regarding the Shareholders
Meeting. Has it happened, or is it rescheduled? Date indicated is April 26,
2007.

[ Reply to This | # ]

Bad faith
Authored by: lannet on Wednesday, September 19 2007 @ 07:32 PM EDT
Giving their General Counsel a raise and a bonus on the same day that they
decide to file for Ch 11 protection smacks of bad faith IMO.

I just hope that Novell see it that way, after all, it's an immediate $50K (plus
tax) plus $50K pa. that Novell, nor any of the creditors, are going to see in
settlement, and that they raise it in front of Gross J. I assume that he can
order disgorgement...

It surprises me that all of the management team didn't line up at the trough...

---
When you want a computer system that works, just choose Linux.
When you want a computer system that works, just, choose Microsoft.

[ Reply to This | # ]

golden handcuffs?
Authored by: doug on Wednesday, September 19 2007 @ 07:48 PM EDT
Is the cash to Tibbits just something to keep him on board? Although it is a
bit late to flee this sinking ship, maybe he was considering it. Is it possible
that the SCOG board decided to purchase his continued motivation?

[ Reply to This | # ]

Need more popcorn!
Authored by: Anonymous on Wednesday, September 19 2007 @ 07:49 PM EDT
This absurd SCOmedy keeps getting better every day now. I have real trouble
trying to keep up with the flood of new articles and comments here and
elsewhere.

Well, I knew I should have bought stock shares of a popcorn manufacturer... To
teh moon! :-)

[ Reply to This | # ]

question..
Authored by: LocoYokel on Wednesday, September 19 2007 @ 08:00 PM EDT
Given SCOX has been found in a court of law to have breached fiduciary duties
and engaged in conversion which (AIUI) either one or both are actions to breach
the corporate veil. With this bankruptcy filing can Novell now specifically go
after the personal assets of the company officers and BOD if they are not
recompensed for their loss as a result of these breaches?

Is the fact that they may have just painted a big target on their bank accounts
and possessions something Darl et. al. might wish to consider?

---
Waiting for the games I play to be released in Linux, or a decent Windows
emulator, to switch entirely.

[ Reply to This | # ]

  • Some people think so - Authored by: Anonymous on Wednesday, September 19 2007 @ 09:23 PM EDT
  • question.. - Authored by: wharris on Wednesday, September 19 2007 @ 11:32 PM EDT
    • question.. - Authored by: eric76 on Thursday, September 20 2007 @ 08:35 AM EDT
      • question.. - Authored by: Anonymous on Thursday, September 20 2007 @ 11:48 AM EDT
SCOXQ?
Authored by: Anonymous on Wednesday, September 19 2007 @ 08:04 PM EDT
When will their ticker symbol change to SCOXQ?

[ Reply to This | # ]

  • SCOXQ? - Authored by: Anonymous on Wednesday, September 19 2007 @ 08:48 PM EDT
McBride's stock holding
Authored by: TJ on Wednesday, September 19 2007 @ 08:28 PM EDT

In previous comments I was analysing the holdings of the board of directors of tSCOg. In particular I was looking for the financial motivation of Darl McBride.

I was looking through the SEC filings and found these filings. Notice how the total owned doesn't report any other holdings for the last three options grants. I'm not sure if that is just a reflection of these being options, but I'd have thought that should still reflect all other holdings. If it is correct, then he's had no stock holding for a while.

It appears as if his main capital gain was from the 200,000 shares acquired at $2.07 just after the IBM complaint was filed. It appears he disposed of most of them before 13th June 2003 when the price got to $11.21. Highest prices (~ $19) were achieved between September & December of 2003.

Acquired   Exercisable   Qty      Owned  Price  Scheme
2006-11-13 2007-11-13  100,000+  100,000 $ 2.30 Option (2002 Omnibus Stock Incentive Plan)
2006-01-23 2007-01-23   80,000+   80,000 $ 3.78 Option (2004 Omnibus Stock Incentive Plan)
2004-12-08 2005-12-08  100,000+  100,000 $ 4.85 Option (2004 Omnibus Stock Incentive Plan)
2003-06-13 2003-06-13    7,003+   15,003 $ 0.001
2003-03-18 2003-03-18  200,000+  200,000 $ 2.07
2003-03-06 -- SCO v IBM complaint filed --
2002-10-14 2002-10-14    3,000+    5,000 $ 1.13
2002-10-11 2002-10-11    5,000+    5,000 $ 1.13

[ Reply to This | # ]

Fraudulent conveyance
Authored by: Kevin on Wednesday, September 19 2007 @ 08:41 PM EDT

These large raises and retention bonuses to insiders: can someone explain to me how they could possibly not be fraudulent conveyances under 11 USC 548(a)(i)(B)(ii)(IV)? Section 548 contains language that was added to the bankruptcy code post-Enron, in order to be able to go after executives who paid themselves huge retention bonuses on the eve of bankruptcy. It seems intended for just such a situation as the creditors face in the SCO case.

---
73 de ke9tv/2, Kevin (P.S. My surname is not McBride!)

[ Reply to This | # ]

If they get delisted, do they have to file with the SEC any more?
Authored by: Anonymous on Wednesday, September 19 2007 @ 09:01 PM EDT
One of SCO's ongoing problems is having to be scrupulous with the truth in their
SEC filings. That must have been very inconvenient. Sure would be nice if they
didn't have to do that any more.

Oh well, they won't have the problem for much longer.
(tiny crocodile tears dribble down my cheek) (Darn, now I feel guilty. Time for
some Hail Marys.)

[ Reply to This | # ]

Tax Shelter
Authored by: Anonymous on Wednesday, September 19 2007 @ 09:30 PM EDT
Cattleback Intellectual Property Holdings, Inc.

Is a tax shelter method that a lot of states are putting the halt to,
unfortunately Delaware allows this.

See this link.

<a
href="http://www.fredlaw.com/articles/ip/inte_0304_kks.html">Link
to article</A>

[ Reply to This | # ]

  • Tax Shelter - Authored by: Anonymous on Wednesday, September 19 2007 @ 10:15 PM EDT
  • Tax Shelter - Authored by: bstone on Wednesday, September 19 2007 @ 10:19 PM EDT
  • Tax Shelter - Authored by: Anonymous on Thursday, September 20 2007 @ 07:00 AM EDT
    • Tax Shelter - Authored by: PJ on Thursday, September 20 2007 @ 07:20 AM EDT
Business as usual?
Authored by: Anonymous on Wednesday, September 19 2007 @ 10:52 PM EDT
If it's really going to be "business as usual" for the SCO Group in
Chapter 11 who do you think they will sue next?

[ Reply to This | # ]

Can't get info about Cattleback: server error
Authored by: lisch on Wednesday, September 19 2007 @ 11:40 PM EDT
I tried visiting the State of Delaware's Division of Corporations web site. I'm willing to fork over the $20 to get info about Cattleback Holdings, but all I got was a server error:
System error has occurred with the following error message
Illegal Attempt
Please logout and report this problem to help desk.
Thank you.

[ Reply to This | # ]

Starting a NEW legal process in bankrupcy
Authored by: Anonymous on Wednesday, September 19 2007 @ 11:42 PM EDT
Don't they need leave/permission from the bankrupcy court to start this new
legal process appealing to the Nasdaq board?

[ Reply to This | # ]

Cattleback, eh?
Authored by: Anonymous on Wednesday, September 19 2007 @ 11:45 PM EDT
Every time I see this I keep thinking of Darl and his comments about "all
hat and NO cattle" ... which pretty much sums up the SCO lawsuits... and I
keep having this urge to say "No, Darl, you can NOT have your
cattleback..."


...D

[ Reply to This | # ]

Urgh...
Authored by: DarkPhoenix on Thursday, September 20 2007 @ 12:12 AM EDT
"SCO owns the core UNIX operating system, originally developed by
AT&T/Bell Labs"

NO. YOU. DON'T. Stop lying about it already!

It's one thing to put in a bankruptcy filing that you believe the decision was
wrong. It's quite another thing to keep announcing to the world that your
opinion is right and the facts are wrong; it simply makes you look like a raving
lunatic without a clue.

Do they need to tattoo this on the director's hands or something?

---
Please note that sections in quotes are NOT copied verbatim from articles, but
are my interpretations of the articles.

[ Reply to This | # ]

They also shoveled loads into the pension fund
Authored by: Anonymous on Thursday, September 20 2007 @ 01:43 AM EDT
just before they decided to file for chapter 11. This raise ties in as It must
be a move to effectively bump his salary for pension purposes.

[ Reply to This | # ]

Fraudulent Bankruptcy?
Authored by: chribo on Thursday, September 20 2007 @ 02:24 AM EDT
There are several articles concerning fraudulent bankruptcy in the penal code of
my country (Switzerland). According to the facts (SCO filings) there is a
probable cause that money has been spent to managers shortly before filing for
chapter 11. Money which should have been retained for the creditors.

Is this illegal in the US as well? If yes, have the trustee and the bankruptcy
judge the duty to inform the state attorney (this would be the case here)?

- chribo

[ Reply to This | # ]

Cattleback Holdings
Authored by: Anonymous on Thursday, September 20 2007 @ 07:39 AM EDT

Seriously, why call it "Cattleback Holdings". "Holdings" is surely a pun on things that they hold from Novell. As for "Cattleback" it seems to imply "rustle back" or "claw back" money from the bankrupcy. Just speculation. of course. But it's fun. Any other suggested interpretations? (No fecal ones please)

[ Reply to This | # ]

Novell's money
Authored by: Anonymous on Thursday, September 20 2007 @ 08:20 AM EDT
In Groklaw's tradition of seeking the truth, we should note that the real reason why MS and Sun payed those $ millions to SCO was to fund the legal attack against Linux. Of course, they could not write that into the contract, so they come up with the cover story about Unix licensing in the contract. Novell cleverly figured out during litigation that based on the wording of the contracts they should get the money from SCO. This is a smart legal chess move by Novell and it is so much fun to watch SCO squirm trying to avoid paying it now.

Legally, it is Novell's, because SCO have messed up the cover story in the contract. But truthfully, it does not really belong to Novell, since it was a payment for attacking Linux. Or maybe they deserve some of it for their turn-around and signing the infamous pact with MS ?

Zs.Zs.

[ Reply to This | # ]

SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankru
Authored by: Anonymous on Thursday, September 20 2007 @ 10:36 AM EDT
you know I always thought caldera linux had potential

wasn't that the linux that played tetris while it was installing - or was that
corel?

anyway looks like the worms are squirming out of their holes.

[ Reply to This | # ]

Digg Article
Authored by: Anonymous on Thursday, September 20 2007 @ 10:55 AM EDT
http://www.digg.com/business_finance/SCO_Na sdaq_Notice_Gives_Tibbitts_Raise_and_Bonus_1_Day_Before_Bankruptcy

[ Reply to This | # ]

SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankru
Authored by: Anonymous on Thursday, September 20 2007 @ 12:16 PM EDT
I'd love to get a $80,000 bonus for failing at my job. Or perhaps in SCO it isnt
regarded as a failure? Did they KNOW that they would lose but the key was to
take a long time doing it? /pf

[ Reply to This | # ]

Preferences in bankruptcy may be recovered
Authored by: Anonymous on Thursday, September 20 2007 @ 12:52 PM EDT
I'm no bankruptcy lawyer, but I understand bankruptcy law provides for the
recovery of some kinds of payments made prior to filing bankruptcy as
"preferences," especially to corporate insiders. I did a quick search
and found this reference:

http://hsdlaw.com/pages/preferencetrap.htm

"The period for preference recovery is extended to one year if the transfer
by the debtor was to an "insider." The term "insider" is
broadly defined in the Bankruptcy Code to include officers, directors or
shareholders of a corporate debtor, their immediate relatives and those in
control of the debtor. For example, if a corporate officer receives a bonus or
unusual transfer from the corporate debtor within one year of the corporate
debtor's bankruptcy filing, such transfer is subject to challenge by the
bankruptcy trustee."

Thus, bonuses and other perks may yet be challenged.

[ Reply to This | # ]

You are all being rotten to me.
Authored by: Ian Al on Friday, September 21 2007 @ 05:28 AM EDT
You come up with these theories about Tibbits' windfalls to burn Novell's money
and rewarding the rustlers and yet you know that something much more evil would
occur to me. Why are you doing this to me?

IIRC Tibbits would have directed any asset purchases and company acquisitions
and would have reviewed the due dilligence. He was aware at an early date that
SCOG had no Unix copyrights.

He signed the letters to the 1500 saying that SCOG would sue them if they didn't
licence code of which SCOG had no copyright. He had the due dilligence didn't
he?

He would have signed the application for copyright registration for copyrights
he knew SCOG did not own and would have sworn that he knew of no reason why SCOG
should not get the registration.

Now, If that is stuff that we know because of all the court documentation, then
how much equally damning stuff is there that we don't know about?

So, if you were Darl and Yarro, wouldn't you be saying 'Ryan, it's clear you
have a major job there stuffing those mattresses. You will have a job thinking
about all those other things we have done in the past. Best not bring them up
with anyone called Gross'?

---
Regards
Ian Al

Linux: Genuine Advantage

[ Reply to This | # ]

  • Good idea that - Authored by: Anonymous on Friday, September 21 2007 @ 11:52 AM EDT
SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankru
Authored by: jig on Sunday, September 23 2007 @ 02:09 AM EDT
bankruptcy law, a quick primer:

when you file, anything you've paid out to anyone in the past 30 (or 90, i
forget) days is automatically brought back into the trust to be distributed to
the creditors.

this 30 or 90 day back date is only for general business interaction. lets say
you've paid out money to a bunch of other businesses, even if you were paying
back loans or for real goods, AND those other businesses are found to be
familial with the bankrupt company. like, owned by other family members, or they
own some large share of the company going bankrupt...

well, then instead of the 30-90 days, you go back a year, and all that money
paid out has to come back in and get redistributed to the creditors according to
what the bankruptcy court rules.

employee? well, get in line, even if you've tried to abscond with a large bonus.
there are some loopholes for employee wages, but not if they've changed
dramatically the day before filing. any bonuses paid are coming back.

anyway, we'll see how far this gets. i "think" that if the APA was
written correctly, all the assets that relate to UNIX IP should probably revert
to Novell upon the financial death of SCO. i'm not sure how bankruptcy affects
explicit contracts, but i don't think someone can swoop in and pick up "the
UNIX business" and become the assignee of the APA (from SCO) through a
bankruptcy sale, at least not without assent from Novell.

[ Reply to This | # ]

SCO Receives Nasdaq Notice Letter, Gives Tibbitts Raise and Bonus 1 Day Before Filing for Bankru
Authored by: Anonymous on Friday, September 28 2007 @ 03:15 PM EDT
Today is 9/28. From what I can tell, SCOX is still being traded. Did I miss
something? I thought the last day of trading was 9/27.

[ Reply to This | # ]

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