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No Bankruptcy Hearing Friday; Incentive Bonuses Motion Continued to April 2
Thursday, March 06 2008 @ 03:01 AM EST

The hearing on Friday has been cancelled in the SCO bankruptcy, as it seems they've worked out the issues that were pending. The Order [PDF] says, "All matters have been resolved by the Court. The hearing has been cancelled." That doesn't mean that the issue about incentive bonuses has been cancelled. It's been continued and will be heard at the April 2nd hearing, at 2 PM. Matters that are resolved without a hearing, with certifications of counsel, are:
1. the SCO Motion to Amend Order Authorizing Payment of Accrued Benefits and for Authorization to Pay Accrued Benefits to Employees Terminated After Entry of Order [Order as PDF], and

2. SCO's Motion for Order Establishing a Bar Date for Filing Proofs of Claim [Order as modified - PDF].

No one objected, even to the latter, which surprises me, but it is what it is. The judge modified the submitted proposed order [PDF], changing the deadline from April 10 to April 21, so evidently there were either informal negotiations and discussions, or the judge himself made the change. It makes no sense to me that any deadline be set before the Novell trial is over, and it doesn't begin until April 29, because we won't know until after the trial what assets SCO might still have, unless the judge is foreshadowing that he intends to approve the new proposed deal. The third possibility is that no one is paying much attention to lesser details. And, in other filings, of course, the lawyers get their fees.

Here are all the filings:

371 - Filed & Entered: 03/03/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service of Cassandra Murray of Epiq Bankruptcy Solutions Regarding Notice of Hearing on Approval of Disclosure Statement in Connection with Debtors' Joint Plan of Reorganization (related document(s)[370] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

372 - Filed & Entered: 03/04/2008
Application for Compensation
Docket Text: Monthly Application for Compensation (Fifth) for Services and Reimbursement of Expenses as Co-Counsel to the Debtors in Possession for the Period from January 1, 2008 through January 31, 2008 Filed by Berger Singerman, P.A.. Objections due by 3/24/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Werkheiser, Rachel)

373 - Filed & Entered: 03/04/2008
Certification of Counsel
Docket Text: Certification of Counsel Regarding Order (1) Amending Order Authorizing Payment of Accrued Benefits; and (2) Authorizing to Pay Accrued Benefits to Employees Terminated After Entry of Order (related document(s)[343] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Exhibit A # (2) Exhibit B) (Werkheiser, Rachel)

374 - Filed & Entered: 03/04/2008
Certification of Counsel
Docket Text: Certification of Counsel Regarding Omnibus Order Approving Certain Quarterly Fee Applications (related document(s)[327], [350], [342], [353], [336] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Exhibit A) (O'Neill, James)

375 - Filed & Entered: 03/04/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service of Cassandra Murray of Epiq Bankruptcy Solutions Regarding Notice of Transfer of Claim (related document(s)[361] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

376 - Filed & Entered: 03/05/2008
Certification of Counsel
Docket Text: Certification of Counsel Regarding Order Granting Debtors' Motion for Order Establishing a Bar Date for Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof (related document(s)[335] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Exhibit A # (2) Exhibit B) (Werkheiser, Rachel)

377 - Filed & Entered: 03/05/2008
Notice of Matters Scheduled for Hearing (B)
Docket Text: Notice of Agenda of Matters Scheduled for Hearing Filed by The SCO Group, Inc.. Hearing scheduled for 3/7/2008 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Attachments: # (1) Exhibit A # (2) Certificate of Service and Service List) (Werkheiser, Rachel)

378 - Filed & Entered: 03/05/2008
Affidavit/Declaration of Service
Docket Text: Supplemental Affidavit/Declaration of Service Regarding Notice of Agenda of Matters Scheduled for Hearing on March 7, 2008 at 2:00 p.m. (related document(s)[377] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

379 - Filed & Entered: 03/05/2008
Order
Docket Text: Order (REVISIONS BY THE COURT) (OMNIBUS) Approving Certain Quarterly Fee Applications. (related document(s)[327], [350], [342], [353], [336] ) Order Signed on 3/5/2008. (Attachments: # (1) Exhibit A) (LCN, )

380 - Filed & Entered: 03/05/2008
Order on Motion to Approve
Docket Text: Order Granting Debtors' Motion for Order Establishing a Bar Date for Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof. (Related Doc # [335]) Order Signed on 3/5/2008. (Attachments: # (1) Exhibit A through C) (LCN, )

381 - Filed & Entered: 03/05/2008
Order
Docket Text: Order (1) Amending Order Authorizing Payment of Accrued Benefits; and (2) Authorizing to Pay Accrued Benefits to Employees Terminated After Entry of Order. (related document(s)[343], [165] ) Order Signed on 3/5/2008. (LCN, )

382 - Filed & Entered: 03/05/2008
Hearing Cancelled. Notice of Agenda of Matters Scheduled for Hearing. Docket Text: HEARING CANCELLED. Amended Notice of Agenda of Matters Scheduled for Hearing. (related document(s)[377] ) Filed by The SCO Group, Inc.. Hearing scheduled for 3/7/2008 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

383 - Filed & Entered: 03/05/2008
Certificate of Service
Docket Text: Certificate of Service re: [Signed] Omnibus Order Approving Certain Quarterly Fee Applications (related document(s)[379] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

384 - Filed & Entered: 03/05/2008
Certificate of Service
Docket Text: Certificate of Service re: [Signed] Order Granting Debtors' Motion for Order Establishing a Bar Date for Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof (related document(s)[380] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

385 - Filed & Entered: 03/05/2008
Certificate of Service
Docket Text: Certificate of Service re: [Signed] Order (1) Amending Order Authorizing Payment of Accrued Benefits; and (2) Authorizing to Pay Accrued Benefits to Employees Terminated After Entry of Order (related document(s)[381] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)


  


No Bankruptcy Hearing Friday; Incentive Bonuses Motion Continued to April 2 | 124 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections here
Authored by: Erwan on Thursday, March 06 2008 @ 05:23 AM EST
If any.

---
Erwan

[ Reply to This | # ]

News Picks Discussions here.
Authored by: Erwan on Thursday, March 06 2008 @ 05:32 AM EST
Don't forget to quote the article.

---
Erwan

[ Reply to This | # ]

OT, the Off topic thread
Authored by: Erwan on Thursday, March 06 2008 @ 05:34 AM EST
As usual. There is an HTML How to if you want to leave clikies.

---
Erwan

[ Reply to This | # ]

IBM damages don't count, I guess
Authored by: Anonymous on Thursday, March 06 2008 @ 07:13 AM EST

Well, everyone is focused on Novell's potential damage claims, but
there could also be damages for IBM to collect, too. I guess those
don't count, and IBM need not be unstayed, either. Still, not a peep
from IBM, it seems.

[ Reply to This | # ]

What's REALLY going on with the Re-Org Plan
Authored by: Anonymous on Thursday, March 06 2008 @ 12:37 PM EST
Some groksters are missing one big point in the re-org plan. It's this -- the
$95M loan financing is not committed under the plan. That's why the weasel words
"up to $95M" are used to describe that funding. "Up to" is a
meaning-void phrase -- it means "as mush or as little as I want, but in any
event no more than 95M". As you can see, the amount becomes an illusion.

The reality is that SCO will use this plan to pay off the other creditors, and
exclude-out IBM and Novell, because that specific class of debt doesn't get
established until there is a "Final Judgment" under the proposed plan.


So the Equity Financing (meaning the $5M) will all get distributed (except for
the constructive trust amount) without IBM or Novell getting a penny. That's
written IN to SCO's proposed plan. And that's true even AFTER Novell gets a
judgment, because it won't be a Final Judgment until after the appeal process.

Then, if a Final Judgment is finally reached, guess what -- none of the $95M
will be advanced by SNCP (because it was, in the end, only "up to" and
not a firm commitment) and SCO is once again just goes insolvent.

So what this means is that:

this scam-plan would have essentially taken any monies duly judged by Judge
Kimball to have been stolen (converted) by SCO from Novell and, except for the
subset of $$ put into the constructive trust (and that amount will be minimized
by SCO by, e.g., throwing money at York, etc), the remaining amount owed and to
ordered to be turned over to Novell will not only NOT be prioritized debt, it
will be a special class of debt that is delegated to "last paid"
lowest-case status.

How's that for taking lemons and making lemonade?

Under the plan the shareholders will get their payout -- the officers will get
their indemnification -- and the other "creditors" meaning the
lawyers, will get paid in full -- and then at the end of the day, SNCP will NOT
come up with any of the $95M if SCO loses. And they won't be breaking any
promise, because this plan doesn't promise anything.

So -- let's evaluate -- SNCP buys a "lottery ticket" to the IBM suit
for $5M, SNCP gets the UNIX assets, SNCP gets the right to continue with
SCOsource on new targets, SNCP's legal fees to Boies are already capped so
Boies is on the hook, if there is a settlement then SNCP gets the upside, if
SCO loses then Novell and IBM will know that SNCP will not fund the equity line,
so that Novell and IBM get nothing.

SNCP has said to the Judge nice words like " we are interested in
settling". But what does that mean? Here's how the settlement negotiations
will go, if this plan were approved. SNCP can pull IBM and Novell aside and say,


"Hey, the game has changed. It's heads-SCO-wins, and tails-you-get-nothing.
Do you still want to play this game now? If you want out, you have to pay me to
settle. I have no downside, and all the players are indemnified too. Your move,
IBM and Novell"

LEXLAW

[ Reply to This | # ]

SNCP affiliates in financial trouble
Authored by: Anonymous on Monday, March 10 2008 @ 01:07 PM EDT

Major news today. Steven Norris, before SNCP, was one of the founders of the Carlyle Group, the big investment trust. Carlyle Capital, one of their funds, is on the verge of collapse. It turns out they were the counter-party in many mortgage-backed securities deals, so they're going down as the housing bubble collapses. Forbes says trading in Carlyle Capital was just halted. The parent Carlyle Group has provided an unsecured credit facility of $150 million to the Carlyle Group as an emergency bailout measure. Many news stories are breaking right now.

Norris is no longer directly involved with the Carlyle Group. But the SNCP web site says they "take advantage of the business experience and relationships of its Investment Committee, including Steve Norris' long-standing relationships and substantial private equity experience as co-founder of The Carlyle Group". So he's still plugged in there.

Novell and IBM certainly will want this explored in some detail, since the proposed deal puts SCO's intellectual property (such as it is) out of reach while effectively turning SCO's obligations into obligations of SNCP. So the financial state of SNCP and its affiliates is relevant to the bankruptcy court. The connections between Norris, the Carlyle Group, SNCP, and Carlyle Capital will have to be explored. That's a searching examination those parties may not want.

It's likely that Norris and SNCP have bigger things to worry about than SCO right now.

[ Reply to This | # ]

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