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The Orders/Minutes from the 6/17 Bankruptcy Hearing
Saturday, June 21 2008 @ 03:06 AM EDT

We have the Order [PDF] now granting SCO's motion for an extension of time to come up with a reorganization plan, along with the minutes from the hearing [PDF] on June 17, along with various certificates of service. The order gives SCO until August 11 to file a plan, but it can ask for more extensions if it needs more. Like it won't.

And the judge OK'd all the quarterly bills [PDF], listed in an Exhibit A [PDF]. So let's see. That's $71,982.79 for Pachulski Stang; $414,074.83 for Berger Singerman [zowie]; $125,930.70 for Mesirow; $161,608.00 for Tanner; and $100,292.62 for Dorsey & Whitney. They don't total it all up, so I will. SCO has received bills in the period from January 1-March 31, 2008 totaling $873,888.94, unless I zoned out while doing the adding. That is just for one quarter. The bills are still being filed. Not for business. Just for legal stuff. Lawyers and financial analysts and accountants for the bankruptcy.

Oh. I almost forgot. $0 for Novell.

Keep in mind, though, the words on page 2 of the order, "provided, however, that all fees and expenses paid pursuant to this Order are subject to final allowance by the Court pursuant to the terms of the Interim Compensation Order." You know what I couldn't help noticing? It probably just means no one asked to get the name removed from the list, but I see that Scott McNutt still gets all the notices. He's the attorney for York.

Here are the filings:

500 - Filed & Entered: 06/17/2008br Minute Entry
Docket Text: Minutes of Hearing held on: 06/17/2008 Subject: OMNIBUS HEARING, FEE APPLICATIONS. (vCal Hearing ID (71956)). (related document(s) [497]) (SS, ) Additional attachment(s) added on 6/17/2008 (SS, ).

501 - Filed & Entered: 06/17/2008
Order
Docket Text: Order (OMNIBUS) Approving Certain Quarterly Fee Applications. (related document(s)[462], [474], [479], [460], [478] ) Order Signed on 6/17/2008. (Attachments: # (1) Exhibit A) (LCN, )

502 - Filed & Entered: 06/17/2008
Order on Motion to Extend/Limit Exclusivity Period
Docket Text: Order Further Extending Debtors' Exclusive Periods in Which to File a Chapter 11 Plan and Solicit Votes Thereon. (Related Doc # [470]) Order Signed on 6/17/2008. (LCN, )

503 - Filed & Entered: 06/17/2008
Certificate of Service
Docket Text: Certificate of Service and Service Lists Regarding [Signed] Omnibus Order Approving Certain Quarterly Fee Applications (related document(s)[501] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

504 - Filed & Entered: 06/17/2008
Certificate of Service
Docket Text: Certificate of Service and Service List Regarding [Signed] Order Pursuant to 11 U.S.C. Section 1121(d) Further Extending Debtors' Exclusive Periods in Which to File a Chapter 11 Plan and Solicit Votes Thereon (related document(s)[502] ) Filed by The SCO Group, Inc.. (Werkheiser, Rachel)

  


The Orders/Minutes from the 6/17 Bankruptcy Hearing | 172 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Off topic thread starts here
Authored by: Totosplatz on Saturday, June 21 2008 @ 03:34 AM EDT
Please make links clicky.

---
Greetings from Zhuhai, Guangdong, China; or Portland, Oregon, USA (location
varies).

All the best to one and all.

[ Reply to This | # ]

Haiku Here
Authored by: Crocodile_Dundee on Saturday, June 21 2008 @ 03:48 AM EDT
No Internet here
A great time on holiday
Aaah, a Groklaw fix

---
---
That's not a law suit. *THIS* is a law suit!

[ Reply to This | # ]

  • What drives them? - Authored by: Anonymous on Saturday, June 21 2008 @ 04:13 AM EDT
    • Good very good - Authored by: Anonymous on Saturday, June 21 2008 @ 06:32 AM EDT
  • Haiku Here - Authored by: Anonymous on Saturday, June 21 2008 @ 07:56 AM EDT
  • Haiku Here - Authored by: Anonymous on Saturday, June 21 2008 @ 08:07 AM EDT
An idea
Authored by: Anonymous on Saturday, June 21 2008 @ 04:03 AM EDT
Why doesn't Novell just stop objecting against every little move SCOX makes (in
particular defending itself against Novell's objections) and let Judge Kimball
finish the job?
At least there would be money left.

[ Reply to This | # ]

Corrections Here
Authored by: SilverWave on Saturday, June 21 2008 @ 04:32 AM EDT
.

---
RMS: The 4 Freedoms
0 run the program for any purpose
1 study the source code and change it
2 make copies and distribute them
3 publish modified versions

[ Reply to This | # ]

News Picks Here
Authored by: SilverWave on Saturday, June 21 2008 @ 04:33 AM EDT
.

---
RMS: The 4 Freedoms
0 run the program for any purpose
1 study the source code and change it
2 make copies and distribute them
3 publish modified versions

[ Reply to This | # ]

The Orders/Minutes from the 6/17 Bankruptcy Hearing
Authored by: Darkside on Saturday, June 21 2008 @ 06:17 AM EDT
So what happens when the money really runs out? How do the parasites get paid
then?

[ Reply to This | # ]

That's an awful lot of money for nada.
Authored by: billyskank on Saturday, June 21 2008 @ 07:02 AM EDT
The way these lawyers and accountants have their noses in the trough is an
outrage.

---
It's not the software that's free; it's you.

[ Reply to This | # ]

Eyeballs for ODF - the Groklaw discussion thread
Authored by: bbaston on Saturday, June 21 2008 @ 09:26 AM EDT
For Groklaw's benefit - whether participating over at OASIS or just passing by - here's the place to post.

PJ reminds those of us monitoring the discussion to
"Stay polite at all times, of course, if you say anything, and you needn't say anything, but do follow along and please keep us posted on anything you see that sounds peculiar."

OASIS discussion list for ODF Implementation, Interoperability and Conformance

Some relevent information includes formation of this discussion and archive of all discussion emails (pick date or thread - direct access doesn't seem to work).

A work-in-progress of the result so far - the draft charter is hosted at: http://sites.google.com/a/od fiic.org/tc/Home

---
IMBW, IANAL2, IMHO, IAVO
imaybewrong, iamnotalawyertoo, inmyhumbleopinion, iamveryold

[ Reply to This | # ]

The Orders/Minutes from the 6/17 Bankruptcy Hearing
Authored by: Anonymous on Saturday, June 21 2008 @ 04:13 PM EDT
Who is paying Judge Goss?

One would reasonably think that Goss would have tossed the existing management
of SCOG out on their bad faith heads. But no. That has not happened. Darl and
the boys continue to pilot the ship further up onto the rocks and shoals utterly
destroying the ship.

And Judge Goss continues to do -- nothing.

krp

[ Reply to This | # ]

Would a Constructive Trust be Applied Immediately?
Authored by: Anonymous on Saturday, June 21 2008 @ 04:28 PM EDT
When Kimball determines the amount of money due to Novell, is Gross obligated to apply a constructive trust? And if so, is he obligated to apply it immediately? SCO will no doubt appeal the constructive trust, and try to have it put off until after SCO exists bankruptcy.

I can see the following avenues for SCO:

  • Appeal the amount, and argue against a trust being applied until after the appeals are exhausted.
  • Ask for application of the trust to be postponed until after a reorganisation plan is approved.
  • Argue that once the money enters the trust it becomes a pre-bankruptcy debt since it has now been "paid" to Novell.
  • Ask for the asset to be placed in the trust be considered a loan from Novell to SCO.
  • Ask that the assets in the trust consist of non-voting shares in SCO-Troll Inc.
  • Some other wheeze which allows SCO to "pay" Novell without actually paying them.
SCO will probably use their bankruptcy status to try to get around actually paying Novell. Novell's only hope would seem be to get the Trustee to kick out the existing management, and then quickly sell off the company's assets. SCO can try to avoid this fate by delaying the reorganisation as much as possible.

Once Novell has a judgement as to how much is due them, they need to start pushing their own re-organisation plan. They happen to be in a good position to propose one though. They are the logical buyer for the royalty collection business and the legacy Unix business since both are based on assets owned by Novell. They can propose taking these businesses back in return for the money they are due. The other creditors can be paid from SCO's remaining cash. The shareholders might even see a few pennies.

One of the primary objectives for chapter 11 bankrutpcy is to preserve a business so that it can continue to operate, serve its customers, provide jobs to its employees, etc. Novell is in the best position of any company to do this, so it would be a good plan from that perspective. The rest of SCO's business isn't worth worrying about. It is also a plan which can be executed quickly, provided SCO's existing managers can be gotten rid of.

The question therefore seems to be whether the bankruptcy judge and the trustee will be willing to put an end to this farce once they are given some viable options.

[ Reply to This | # ]

Seems Strange To Me...
Authored by: sproggit on Sunday, June 22 2008 @ 02:14 AM EDT
Let's momentarily put to one side all the debate around Constructive Trust and
also the various tricks that The SCO Group are trying to pull and consider the
present situation in these terms:

1. The SCO Group have asked - and Judge Gross has granted - a further extension
to their period of 'exclusivity' [with respect to the generation of a
reorganization plan] because Judge Kimball has not yet ruled on the SCO vs.
Novell case.

2. SCO continue to pay lawyers very large sums of money - as this article shows,
more tha $800,000 in the first quarter of this year - to generate new
reorganization plans.

Now, I am sure that there is a certain degree of efficiency that can be achieve
by running some of these activities in parallel. However, surely SCO retains
some last vestiges of an internal legal team? What are the remaining company
directors doing with their time?


I do appreciate that it is exceptionally difficult to find a lawyer who will
take on a case to sue another lawyer. Finding one who would take on a Court has
to be next to impossible, unless of course you count the appeals process.

For some reason I cannot help but suspect that there has been some
behind-the-scenes conversation between McBride and Novell in which he made them
an offer that came with the attached twist of, "Do this my way or I'll burn
my way through all the cash and you'll get nothing".


The management and directors of The SCO Group have made a mockery of the Courts
and the Law since they started this eSCOpade back in 2003 and at this point in
time it seems as though they are going to get away with it.

I can only hope that Novell have spotted a legal approach that will allow them
to try and recover something from SCO's management and directors. But I'm not
holding my breath.

[ Reply to This | # ]

When Will The Charade End?
Authored by: Anonymous on Sunday, June 22 2008 @ 10:00 AM EDT

I wonder how many more weeks, months, years we have left in SCO's CHARADE/PARADE?

PJ and others have listed a variety of scenarios of why SCO started this SCO CHARADE/PARADE years ago. This is, what was the motivation? But, is it a new ball game that we are witnessing now - a new CHARADE/PARADE on the part of SCO?

A few days ago the federal U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) charged and arrested 400 plus people connected to the gigantic mortage scam in the U.S.A. (with loses of over 300 billion and still counting). This mortgage scam has brought the entire investment system in the U.S.A. and other countries to it's knees. And the U.S.A.'s attorney generals says that more charges and more arrests will follow.

Following the third major "sweep" of the mortgage industry in four years, the U.S. Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI) announced on Thursday that it had arrested over 400 real estate industry players since March, dozens of them over the last two days, for incidences of mortgage fraud that have contributed to the housing crisis. Announcement of the arrests came at a Thursday afternoon Justice Department press conference conducted by Deputy Attorney General Mark R. Filip and FBI Director Robert Mueller. .... In a separate action, an indictment was unsealed in the Eastern District of New York charging two Bear Stearns portfolio managers with conspiracy, securities fraud, wire fraud, and insider trading charges growing out of alleged misrepresentations to two Bear Stearns hedge funds that invested in securities tied to mortgage debt. The indictment alleges that the two marketed the funds as a low risk strategy. By March, 2007 they believed the funds were in grave condition and at risk of collapse but made misrepresentations about the amount of money other investors were withdrawing and about the extent of their personal investment in the funds. This was done, the indictment alleges, to stave off investor withdrawal. The funds did collapse last summer, resulting in losses to investors estimated at $1.4 billion.

SCO's lawyers (and advisors in the investment industry) knew that the above charges and arrests were coming. Is it possible that everything that SCO's Darl, lawyers and advisors in the investment industry have been doing lately is to produce a scenario aimed at the U.S.A.'s attorney general's offices?

I am sure Darl et al. witnessed the two Bear Stearns portfolio managers being led out of their offices in handcuffs!

Does losing in Utah equate with fraudulent statements in the SCO Prospectus? In due time, we all will find out.

[ Reply to This | # ]
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