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| SCO Bankruptcy Filings, MOR for January, Dec. Hearing Transcript - Updated |
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Wednesday, March 25 2009 @ 02:24 AM EDT
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There are a lot of filings to catch up on in the SCO bankruptcy, the usual bleeding of the patient with bills and such. Also the monthly operating reports for January from SCO, and the transcript [PDF] from the December hearing which was embargoed until March but is now available. We had put it in the Bankruptcy Timeline page, while I was busy working on other things, but someone asked for it today, so I'll highlight that it is available, in case others missed it. If you check Groklaw's Timeline pages, you'll generally be able to find the document you are looking for. No matter what else is or isn't going on, we keep that updated. I must say, the transcript couldn't be less interesting, unless you enjoy watching mutual admiration societies and hearing the judge tell SCO's attorneys they are doing an excellent job on the claims process, despite it being an ordeal. It's an awkward conversation, to my taste. See what you think. It will certainly help the attorneys should there ever be a question about their interminable bills, I suppose. Funny. When I think 'SCO' and 'ordeal' in the same sentence, their attorneys excellence in the bankruptcy claims process isn't what pops into my mind. : D The real question is, can they write up an excellent reorganization plan that will actually get airborne, one that doesn't stiff creditors Novell and IBM?
Here are the PDFs and the docket entries, so you can sort through it all and see what you find:
03/12/2009 - 719 - Certificate of No Objection (No Order Required) Regarding Seventeenth Interim Application of Berger Singerman, P.A. for Compensation for Services and Reimbursement of Expenses, as Co-Counsel to the Debtors in Possession for the Period from January 1, 2009 through January 31, 2009 (related document(s) 707 ) Filed by The SCO Group, Inc.. (Attachments: # 1 Certificate of Service and Service List) (O'Neill, James) (Entered: 03/12/2009)
03/13/2009 - 720 - Quarterly Application for Compensation (Fifth) and Reimbursement of Expenses of Pachulski Stang Ziehl & Jones LLP, as Co-Counsel to the Debtors and Debtors in Possession, for the Period from October 1, 2008 through December 31, 2008 Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 4/2/2009. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B # 4 Exhibit C # 5 Affidavit of Service and Service List - Fee Application# 6 Affidavit of Service and Service List - Notice Only) (Makowski, Kathleen) (Entered: 03/13/2009)
03/16/2009 - 721 - Debtor-In-Possession Monthly Operating Report for Filing Period January 2009 for SCO Operations, Inc. Filed by The SCO Group, Inc.. (Attachments: # 1 Affidavit of Service and Service List) (O'Neill, James) (Entered: 03/16/2009)
03/16/2009 - 722 - Debtor-In-Possession Monthly Operating Report for Filing Period January 2009 for The SCO Group, Inc. Filed by The SCO Group, Inc.. (Attachments: # 1 Affidavit of Service and Service List) (O'Neill, James) (Entered: 03/16/2009)
03/16/2009 - 723 - Monthly Application for Compensation [Seventeenth] and Reimbursement of Expenses as Co-Counsel to the Debtors and Debtors in Possession, for the Period from January 1, 2009 through January 31, 2009 Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 4/6/2009. (Attachments: # 1 Notice # 2 Exhibit A # 3 Certificate of Service and Service List) (O'Neill, James) (Entered: 03/16/2009)
03/20/2009 - 724 - Interim Application for Compensation (Eleventh) for the period December 1, 2008 through February 28, 2009 Filed by Dorsey & Whitney LLP. Objections due by 4/9/2009. (Attachments: # 1 Exhibit A # 2 Exhibit B # 3 Exhibit D # 4 Exhibit E# (5) Notice) (Schnabel, Eric) (Entered: 03/20/2009)
03/20/2009 - 725 - Certificate of Service Eleventh Monthly Fee Application Filed by Dorsey & Whitney LLP. (Schnabel, Eric) (Entered: 03/20/2009)
03/24/2009 - 726 - Interim Application for Compensation (Eighteenth) for Services and Reimbursement of Expenses, as Co-Counsel to the Debtors in Possession for the Period from February 1, 2009 through February 28, 2009 Filed by Berger Singerman, P.A.. Objections due by 4/13/2009. (Attachments: # 1 Notice # 2 Exhibit A # 3 Certificate of Service and Service List) (Makowski, Kathleen) (Entered: 03/24/2009)
Update: Groklaw's Steve Martin noticed some interesting points, which he left as a comment, and I thought I'd put it here as well:
In going over docket 726's Exhibit A, I note some interesting things. -
2/5/2009 -- CONFER, MEMOS, COORDINATE REGARDING STALKING HORSE REQUEST FOR 5% BREAK UP FEE AND OTHER ISSUES PERTAINING TO MOTION TO SELL
(Looks like there is indeed a "stalking horse" bidder.)
-
2/17/2009 -- EXCHANGE EMAIL COMMUNICATIONS WITH R. TIBBITTS REGARDING PATENT
(Patent??) -
2/23/2009 -- FOLLOW UP REGARDING SALE MOTION, ISSUES IN OBJECTIONS, RESPONSES AND NEXT STEPS, CONFER AND COORDINATE WITH REORGANIZATION TEAM REGARDING SAME; COORDINATE REGARDING LIST OF INVESTMENT BANKERS TO CONTACT; FOLLOW UP REGARDING REVISIONS TO FORM OF APA AND SALE MOTION, BEGIN TO DRAFT REVISIONS, RIDERS; FOLLOW UP WITH CLIENT AND REORGANIZATION TEAM REGARDING ISSUES RAISED BY ADDITION OF UNIXWARE ASSIGNMENT AND LICENSE
(UnixWare?? What's up there? Are they now considering dumping UnixWare as well?)
-
2/23/2009 -- EXCHANGE E-MAIL CORRESPONDENCE WITH DANIEL LAMPERT
(There is a "Daniel Lampert" list ed as a shareholder in the Berger Singerman firm. Do the lawyers now bill the client just for talking with each other?) -
2/24/2009 -- CONTINUE REVIEW AND REVISIONS TO SALE MOTION, APA; COORDINATE AND CONFER WITH INVESTMENT BANKERS AND CLIENT, PROGRESS SALE AND DIP LOAN FUNCTION, COORDINATE WITH BUSINESS REORGANIZATION TEAM REGARDING EFFORTS, ETC; FOLLOW UP; CONFER, MEMOS WITH CLIENT, INVESTMENT BANKERS, BUSINESS REORGANIZATION TEAM, ETC REGARDING ADDING THE LITIGATION UPSIDE AS PART OF THE ASSETS BEING SOLD AND AVAILABLE AS COLLATERAL, COMPENSATION, IN SALE/LOAN EFFORT
(Now they're talking about making "litigation upside" an asset to be sold. Hm. Wonder who they'd find to buy that asset [sic], and just what valuation due diligence would place on it?)
- 2/26/2009 -- CONFER REGARDING REVISED TRANSACTION; REVIEW LETTER OF INTENT; REVIEW MATERIALS REGARDING MOTION TO APPROVE SALE; START WORK ON REVISIONS TO MOTION
(We apparently now have a letter of intent, which in my own mind implies a buyer.) -
2/27/2009 -- BEGIN REVISING ASSET PURCHASE AGREEMENT FROM SNCP
(So SNCP is back in the picture. Wonder if they're once again the "stalking horse" bidder?)
The answer to the question about billing, although it can vary by firm, is that you charge for time spent dealing with the ball of wax the client has handed you. That would include research, conferences with other attorneys, emails, phone calls, etc.
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| Authored by: SteveRose on Wednesday, March 25 2009 @ 02:30 AM EDT |
Please indicate the correction in the title as usual
---
The bars I'm admitted to, serve drinks. Microsoft cares about Microsoft, so I
trust and rely upon Linux.[ Reply to This | # ]
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- Corrections Here - Authored by: Anonymous on Wednesday, March 25 2009 @ 11:23 AM EDT
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| Authored by: SteveRose on Wednesday, March 25 2009 @ 02:32 AM EDT |
For comments unrelated to this article.
---
The bars I'm admitted to, serve drinks. Microsoft cares about Microsoft, so I
trust and rely upon Linux.[ Reply to This | # ]
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- Unusual legal dilemma in Germany - Authored by: Anonymous on Wednesday, March 25 2009 @ 06:53 AM EDT
- Off Topic [OT] Here - Authored by: Stumbles on Wednesday, March 25 2009 @ 07:26 AM EDT
- Expensive "free" software? It it legal? - Authored by: tiger99 on Wednesday, March 25 2009 @ 09:25 AM EDT
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- abso delicously abso delightly abso dewonderfully .. - Authored by: emacsuser on Wednesday, March 25 2009 @ 03:17 PM EDT
- Open Source working the way Open Source should work - A True Story - Authored by: Anonymous on Thursday, March 26 2009 @ 03:29 AM EDT
- Different Daniel Lamberts - Authored by: Anonymous on Thursday, March 26 2009 @ 06:37 AM EDT
- Yet another MS patent law suit - Authored by: Anonymous on Thursday, March 26 2009 @ 11:50 AM EDT
- Geithner Calls for ‘New Rules of the Game’ in Finance (Update3) - Authored by: Anonymous on Thursday, March 26 2009 @ 01:50 PM EDT
- Timeline: 40 years of OS milestones - Authored by: SpaceLifeForm on Thursday, March 26 2009 @ 02:40 PM EDT
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| Authored by: SteveRose on Wednesday, March 25 2009 @ 02:34 AM EDT |
Please indicate which Groklaw newspick item you are referring to in the title of
your post.
---
The bars I'm admitted to, serve drinks. Microsoft cares about Microsoft, so I
trust and rely upon Linux.[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 04:35 AM EDT |
$58,024.28
HaHaHaHaHaHa.[ Reply to This | # ]
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| Authored by: Steve Martin on Wednesday, March 25 2009 @ 07:13 AM EDT |
In going over docket 726's Exhibit A, I note some interesting
things.
2/5/2009 -- CONFER, MEMOS, COORDINATE
REGARDING
STALKING HORSE REQUEST FOR 5% BREAK UP FEE
AND OTHER ISSUES PERTAINING
TO MOTION TO
SELL
(Looks like there is indeed a "stalking horse"
bidder.)
2/17/2009 -- EXCHANGE EMAIL COMMUNICATIONS WITH
R.
TIBBITTS REGARDING PATENT
(Patent??)
2/23/2009 --
FOLLOW UP REGARDING SALE MOTION, ISSUES IN OBJECTIONS, RESPONSES AND NEXT
STEPS, CONFER AND COORDINATE WITH REORGANIZATION TEAM REGARDING SAME; COORDINATE
REGARDING LIST OF INVESTMENT BANKERS TO CONTACT;
FOLLOW UP REGARDING REVISIONS
TO FORM OF APA AND SALE MOTION, BEGIN TO DRAFT REVISIONS, RIDERS; FOLLOW UP WITH
CLIENT AND REORGANIZATION TEAM REGARDING ISSUES RAISED BY ADDITION OF UNIXWARE
ASSIGNMENT AND LICENSE
(UnixWare?? What's up there? Are they now
considering dumping UnixWare as well?)
2/23/2009 -- EXCHANGE
E-MAIL CORRESPONDENCE WITH DANIEL LAMPERT
(There is a "Daniel Lampert" list
ed as a shareholder in the Berger Singerman firm. Do the lawyers now bill
the client just for talking with each other?)
2/24/2009 --
CONTINUE REVIEW AND REVISIONS TO SALE
MOTION, APA; COORDINATE AND CONFER
WITH
INVESTMENT BANKERS AND CLIENT, PROGRESS
SALE AND DIP LOAN FUNCTION,
COORDINATE WITH
BUSINESS REORGANIZATION TEAM REGARDING
EFFORTS, ETC; FOLLOW UP;
CONFER, MEMOS WITH
CLIENT, INVESTMENT BANKERS, BUSINESS
REORGANIZATION TEAM, ETC
REGARDING ADDING
THE LITIGATION UPSIDE AS PART OF THE ASSETS
BEING SOLD AND
AVAILABLE AS COLLATERAL,
COMPENSATION, IN SALE/LOAN EFFORT
(Now they're
talking about making "litigation upside" an asset to be sold. Hm. Wonder who
they'd find to buy that asset [sic], and just what valuation due diligence would
place on it?)
2/26/2009 -- CONFER REGARDING REVISED
TRANSACTION;
REVIEW LETTER OF INTENT; REVIEW MATERIALS
REGARDING MOTION TO
APPROVE SALE; START
WORK ON REVISIONS TO MOTION
(We apparently now have a
letter of intent, which in my own mind implies a
buyer.)
2/27/2009 -- BEGIN REVISING ASSET PURCHASE AGREEMENT
FROM SNCP
(So SNCP is back in the picture. Wonder if they're once again
the "stalking horse" bidder?)
Anybody get any feeling from
this? I confess it's pretty thick fog to me.
---
"When I say
something, I put my name next to it." -- Isaac Jaffe, "Sports Night" [ Reply to This | # ]
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- Litigation upside - Authored by: Anonymous on Wednesday, March 25 2009 @ 01:50 PM EDT
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| Authored by: DaveJakeman on Wednesday, March 25 2009 @ 08:34 AM EDT |
What the bankruptcy attorneys are excellent at is draining the coffers before
the creditors get a look-in.
---
Monopolistic Ignominious Corporation Requiring Office $tandard Only For
Themselves[ Reply to This | # ]
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| Authored by: s65_sean on Wednesday, March 25 2009 @ 08:47 AM EDT |
According to the the BK timeline page, the next bankruptcy hearing is scehduled
for next Monday, March 30,2009 at 2:00 p.m.
Is anyone planning on attending?
This one should be more interesting than the last one that PJ pointed to the
transcript from in this article.
They're going to be covering SCO's latest request for an extension to the
exclusivity period, plus the latest motion for the confirmation hearing
scheduling and the proposed Disclosure statement that they want to send to the
creditors and shareholders "in order to permit such creditors and
shareholders to make an informed decision in voting to accept or reject the
debtor's Amended Joint Plan of Reorganization".[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 10:56 AM EDT |
What is going on with the appeal? Should there be a Novell Appeal Timeline? I
was hoping to go to a couple of the hearings, if there are any, as it is in
"my neck of the woods".[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 11:18 AM EDT |
At this point, since the point of bankrupcy, at the end of
January the company has had a total operating profit of
NEGATIVE 11 million dollars. There has not been a single
profitable month or quarter.
Even if you were to completely ignore the lawyers
professional fees, and look at this again as an operational
company and assume the lawsuits just fell off the face of
the earth, operating would still be negative because they
would then have to have a finance department and some of
those kinds of services would then be an additional burden
to salaries, etc.
So. However long now we have been in bankrupcy with dismal
operating performance.
Overall declining revenue streams.
At this point (end-January) 12 million in liabilities and
only 9 million in assets.
No confirmable plan and a whole slew of objections on the
books to the one they have filed.
Does the trustee not read the MORs? If the judge smacks
down this vindictive and highly snarky plan of SCO's, who
gets to step in and say "Uh, you know judge, these
operating reports are really looking like we may need to
start discussing chapter 7 here, sir."?
---
Clocks
"Ita erat quando hic adveni."[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 11:54 AM EDT |
Has anymore been heard out of the mediation/arbitration?
Did it happen and I missed it?[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 06:31 PM EDT |
The question is how much will they get.
The latest financial information from the 10Q show that as of January 31 SCO is
in the hole to the tune of $4.5M.
Even if they get $5M from auction, they pay off all prepetition liabilities and
have a need value of $0.
As they have failed to make their business turn a profit. The sale needs to
raise $10M or more for them to have any reasonable life expectancy of ~1 year or
more. Anything less and the failure to make the business profitable leaves them
just right back in BK court in a few months.
[ Reply to This | # ]
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| Authored by: Anonymous on Wednesday, March 25 2009 @ 08:28 PM EDT |
I have held the opinion for some time that THAT is their biggest objective in
ANY "reorganization" plan: They don't want to have to pay ANYTHING to
either Novell or IBM, under any circumstances, and is probably their biggest
single reason to want to retain exclusivity -- until they totally run out of
funds, as things look now.[ Reply to This | # ]
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| Authored by: cjk fossman on Thursday, March 26 2009 @ 12:49 PM EDT |
What are the chances of this little scene?
Court: SCO, you converted 1.5 $bazillion in funds due Novell. Give it back.
SCO: We're broke. Spent it all. Our lawyers, accountants, stalking horses,
and assorted hangers-on have it now.
Court: You lawyers, accountants, et al., regurgitate those funds!
Beneficiaries (in unison) We're filing for Chapter 11. See you in Delaware. [ Reply to This | # ]
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| Authored by: Anonymous on Thursday, March 26 2009 @ 03:46 PM EDT |
It's on epiq ...
NOTICE OF AGENDA OF MATTERS SCHEDULED FOR HEARING ON MACH 30.2009. AT 2:00 P.M.
... highlight (?) is that disclosure statement, confirmation hearing, etc will
"go forward as a status conference only" (again).
Delay, delay, delay.
[ Reply to This | # ]
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- SCOGBK#727 - Authored by: red floyd on Thursday, March 26 2009 @ 03:54 PM EDT
- SCOGBK#727 - Authored by: Anonymous on Thursday, March 26 2009 @ 05:23 PM EDT
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