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Latest Bankruptcy Filings - Hearings Schedule & Missing Pages - Updated
Saturday, April 26 2008 @ 08:44 PM EDT

We have the Order [PDF] now with the schedule for the upcoming bankruptcy omnibus hearings, and it goes like this:
June 17 at 2 PM - Re quarterly fees
July 15 at 10 AM
August 13 at 10 AM
September 16, at 10 AM

What are they for? I have no idea, other than the first one, but I assume we'll find out closer to the dates. Not that they stick to announced schedules anyway. SCO has such a time getting ready.

And Dorsey & Whitney acknowledge a clerical error resulted in 5 pages of billings being inadvertently omitted from its 5th bill's Exhibit D [PDF], the one from February. So they submit the missing pages [PDF] now. I confess it made me look that little bit more closely.

The mysterious D. Marx, who first surfaced in Berger Singerman's October bill shows up again in Dorsey & Whitney's omitted pages, and he has been a busy bee. It's all about SEC filings and blue sky requirements in California in connection with shares and about reissuing shares when you're in bankruptcy and writing proxy statements and lots of other higher math projects SCO has cooking. Let's see. How do we take the money and run and get away with it? Hey, what are lawyers for?

N. Brower is in on this also, and T. Sestak and a C. Jones. Nope. No relation. You must know by now math skills don't run in my family at all, which I would guess makes SCO very, very glad.

Um. Wait. What's this? D. Marx was researching "issues relating to securities issuances while in bankruptcy" on February 5, while C. Jones on the 12th reviewed documents "to determine number of preferred shares available for issuance." Oh, lordy. Now what's the plan? Do they never quit? Evidently not, since N. Brower researched the same topic the same day, along with the question whether beneficial interests in a liquidating entity need to be registered with the SEC. More on California, with C. Peters drafting a transmittal letter to California's Department of Corporations "concerning compliance of registrations of stock plan." Whose stock plan? Is SCO moving to California? After it throws off its cocoon and turns into a post-Chapter-11 butterfly, it's heading for California? Shame about those recently renewed leases in Utah and Massachusetts, if so. See? I told you they weren't hopping a midnight plane to Rio.

And why would they write this? C. Peters downloaded the filed proxy for 2007 "in Microsoft Word format". For historians, perchance. Once upon a time, in a universe far, far away, people used to use proprietary software called Microsoft Word .... "Dad! Stop fooling around. That's silly. You're *embarrassing* us. Nobody would ever do *that*!"

Meanwhile, back to February billings, D. Marx was working on another interesting tidbit: preparing an email to send to a shareholder "who wants to submit a proposal for the annual meeting." Ah! Now there's an idea. Submitting proposals for SCO's annual meeting. I think we should come up with some suggestions, just for fun. They never take our advice anyway, but here's mine:

Cut it out. Fess up. Ask Boies Schiller for some money back. Pay what you owe Novell and IBM and Red Hat. Groklaw has a tip box. You should. You know you should. You know you owe me.

Too radical? Well, had they paid attention in my GPL Summer School and other advice back in 2003, they'd have avoided a lot of trouble. Not that it isn't superlative fun watching folks dance and prance when they see chickens on the horizon flying home. Of course, I'm just kidding around. I don't want their money. Nobody wants their code. Not a dime. Not a line.

Here are all the filings:

451 - Filed & Entered: 04/22/2008
Transfer/Assignment of Claim
Docket Text: Transfer/Assignment of Claim. Transfer Agreement 3001 (e) 2 Transferor: CCI NETWORK SERVICES To REVENUE MANAGEMENT. Filed by Revenue Management. (Kane, Dana)

452 - Filed & Entered: 04/23/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding Sixth Interim Application of Tanner LC for Compensation for Services and Reimbursement of Expenses as Accountants to the Debtors for the Period from March 4, 2008 through March 31, 2008 (related document(s)[424] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

453 - Filed & Entered: 04/24/2008
Certification of Counsel
Docket Text: Certification of Counsel Regarding Omnibus Hearing Dates Filed by The SCO Group, Inc.. (Attachments: # (1) Proposed Form of Order # (2) Certificate of Service and Service List) (Werkheiser, Rachel)

454 - Filed & Entered: 04/24/2008
Notice of Service
Docket Text: Notice of Service Notice of Filing Supplemental Detail to Fifth Monthly Fee Application of Dorsey & Whitney LLP for the Period February 1, 2008 through February 29, 2008 (related document(s)[433] ) Filed by Dorsey & Whitney LLP. (Schnabel, Eric)

455 - Filed & Entered: 04/25/2008
Order Setting Omnibus Hearing Dates
Docket Text: Order Setting Omnibus Hearing Dates. All hearings will be held at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware (Related document(s)[453] ). Omnibus Hearings scheduled for 6/17/2008 at 02:00 PM., 7/15/2008 at 10:00 AM., 8/13/2008 at 10:00 AM., 9/16/2008 at 10:00 AM. Signed on 4/25/2008. (JAF, )

456 - Filed & Entered: 04/25/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service of Epiq Bankruptcy Solutions, LLC (related document(s)[451] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

457 - Filed & Entered: 04/25/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service Regarding [Signed] Hearing Scheduling Order (related document(s)[455] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

458 - Filed & Entered: 04/25/2008
Certificate of Service
Docket Text: Certificate of Service of Notice of Filing of Supplemental Detail to Fifth Monthly Fee Application of Dorsey & Whitney LLP, Special Counsel to the Debtors and Debtors-in-Possession for the Period February 1, 2008 through February 29, 2008 Filed by Dorsey & Whitney LLP. (Schnabel, Eric)

Update: D. Marx appears to be David Marx of Dorsey & Whitney. His specialties, according to his company bio are the following:

Mr. Marx is an Associate in Dorsey's Corporate group, focusing his practice on corporate and securities law. Mr. Marx advises public and private companies in connection with a wide variety of corporate and securities law matters including mergers and acquisitions, private placements and venture capital financings, 144A offerings, SEC reporting and regulatory matters, Sarbanes-Oxley Act compliance, NASDAQ and NYSE compliance matters, and general corporate counseling and governance. In addition, he has represented issurers and underwriters in public equity offerings.


  


Latest Bankruptcy Filings - Hearings Schedule & Missing Pages - Updated | 244 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections thread
Authored by: tyche on Saturday, April 26 2008 @ 08:49 PM EDT
Please indicate where the correction is.

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

Off Topic here
Authored by: DannyB on Saturday, April 26 2008 @ 08:52 PM EDT
Please make links clickable.

<a href="www.url-goes-here.com">Description Here</a>


---
The price of freedom is eternal litigation.

[ Reply to This | # ]

News Pick thread
Authored by: tyche on Saturday, April 26 2008 @ 08:53 PM EDT
Please put the title of the news pick in the title of your post.

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

Don't be silly PJ
Authored by: The Mad Hatter r on Saturday, April 26 2008 @ 10:05 PM EDT


If they were to admit that this was all a scam from Day One, it would be
vultures, not chickens gathering on the horizon. This is of course the problem
with taking a path that is based on dishonesty, once you're on it, you're riding
the tiger.

Of course I could be doing a great disservice to the management group at TSCOG,
and they may have been acting honestly all along. But I doubt it.



---
Wayne

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

[ Reply to This | # ]

Anonymous Shareholder = A. Pertrofsky?
Authored by: rsteinmetz70112 on Saturday, April 26 2008 @ 10:07 PM EDT
Seems to kinda fit.

---
Rsteinmetz - IANAL therefore my opinions are illegal.

"I could be wrong now, but I don't think so."
Randy Newman - The Title Theme from Monk

[ Reply to This | # ]

Issuing Shares
Authored by: Anonymous on Saturday, April 26 2008 @ 10:11 PM EDT
D. Marx was researching "issues relating to securities issuances while in bankruptcy" on February 5, while C. Jones on the 12th reviewed documents "to determine number of preferred shares available for issuance." Oh, lordy. Now what's the plan?
It is common for bankrupt companies to convert debt to equity by issuing shares to creditors. This dilutes the value of existing shares, but allows the company to exit bankruptcy without the burden of paying interest on loans (excessive debt is a common reason for bankruptcy).

Also, shares are sometimes used as bonuses for the executives as an "incentive" to remain. These bonuses can be very large. It is easier for a bankrupt company to be generous with shareholder's equity than it is to spend cash. The original shareholders can easily end up with less than 10% of the equity in the post-bankruptcy company.

A possible scenario for SCO would be to issue new shares to pay off creditors (and possibly Novell as well), along with large blocks of shares issued to SCO executives. SCO can then exit bankruptcy and take on new debt (from York, SNCP, etc.) to continue on in business as before. Voting rights could be set up so that the creditors get non-voting preferred shares, and the executives get common shares with voting privileges.

Another scenario is that this was in some way related to a proposed SNCP deal. That deal may have involved issuing new equity to SNCP rather than a simple sale of assets.

Generally though, I would not be surprised if SCO were to propose issuing new equity with various complex limitations attached to them and using these to pay Novell. The shares would be restricted such that Novell could not use them to exercise any control over SCO.

[ Reply to This | # ]

What are the omnibus hearings for?
Authored by: Erwan on Sunday, April 27 2008 @ 04:16 AM EDT

What are the omnibus hearings for?

To keep the Groklaw 7 busy. :-)

Unless it is just standard practice in Delaware Bankruptcy Court to plan monthly hearings a few at a time. The previous 2 orders setting omnibus hearings were:

  • [57] - Omnibus Hearings scheduled for 05-Oct-2007 at 01:30 PM., 06-Nov-2007 at 02:00 PM., 05-Dec-2007 at 10:00 AM., 08-Jan-2008 at 10:00 AM., 05-Feb-2008 at 10:00 AM.
  • [326] - Omnibus Hearings scheduled for 07-Mar-2008 at 02:00 PM., 18-Apr-2008 at 01:30 PM., 15-May-2008 at 10:00 AM.

---
Erwan

[ Reply to This | # ]

Latest Bankruptcy Filings - Hearings Schedule & Missing Pages
Authored by: Anonymous on Sunday, April 27 2008 @ 11:59 AM EDT
As someone who has been following this sad sorry story on Groklaw for EVER, I
just have to say that this:

<i>Cut it out. Fess up. Ask Boies Schiller for some money back. Pay what
you owe Novell and IBM and Red Hat. Groklaw has a tip box. You should. You know
you should. You know you owe me.</i>

made me laugh. Not merely out loud, but for several minutes.

PJ, you are an amazing person, and Groklaw is probably one of the best things on
the interweb. I will be using the tip box. Thankyouthankyouthankyouthankyou.

[ Reply to This | # ]

Identity of D. Marx
Authored by: lordshipmayhem on Sunday, April 27 2008 @ 01:33 PM EDT
Neither a relative of Groucho or of Karl, I speculate that this is a pseudonym.

It's actually this intern's grade during law school.

[ Reply to This | # ]

"in Microsoft Word format"
Authored by: ak on Sunday, April 27 2008 @ 02:27 PM EDT
There could be a good reason why they mention that the downloaded file was in
"Microsoft Word" format. One issue with that file could be the history
feature or other features of this sort of binary files.

[ Reply to This | # ]

Jury Trial set for 29-Apr-2008 = ?
Authored by: Anonymous on Monday, April 28 2008 @ 08:47 AM EDT
According to Time Line

29-Apr-2008 SCO vs Novell [484] Jury Trial set for 17-Sep-2007 29-Apr-2008
08:30 AM in Room 220 246 220 before Judge Dale A. Kimball. [Note: Jury trial
denied by [453]. Courtroom changed by [460]. Date stayed by [471] changed by
[484].]

Is this still current or has SCO pulled another fast one?

[ Reply to This | # ]

Only One Hit For SCO vs Novell On GOOGLE NEWS!?
Authored by: Anonymous on Monday, April 28 2008 @ 12:19 PM EDT
I did a search in Google News today and got only one web page - one web site
covered the fact that a trial is coming up! Just go to Google News and enter
SCO vs Novell.

Everyone asleep at the "Media Wheel"! Or is Google playing games? You
know
multi-billionaires have to protect each other's ass.

[ Reply to This | # ]

Butterfly - Latest Bankruptcy Filings - Hearings Schedule & Missing Pages - Updated
Authored by: Anonymous on Monday, April 28 2008 @ 04:23 PM EDT
Doesn't SCO have some subsidiaries which are not in bankruptcy?

Take your patents, transfer them to that company for a fair fee, then sell the
non-bankrupted subsidiary for a fair fee to someone else (who will agree to hire
you on, and give you a nice stock option). SCO stock is traded in at some
reasonable exchange rate with this new outside company.

Then the SCO ship can be left to quietly sink beneath the waves.

Wait, what stock holders. I thought they were all insiders by this time.

[ Reply to This | # ]

Hans Reiser verdict
Authored by: Anonymous on Monday, April 28 2008 @ 06:12 PM EDT
TBA 15:15 PDT

[ Reply to This | # ]

Why move to California?
Authored by: Anonymous on Tuesday, April 29 2008 @ 08:32 AM EDT
Why would they want to move to California? Because they want to rename
themselves to The Santa Cruz Operation of course!

[ Reply to This | # ]

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