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| SCO 8K Acknowledges its New Reality |
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Friday, August 28 2009 @ 10:52 AM EDT
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SCO's true situation is here, in the latest 8K:
Item 1.03 Bankruptcy or Receivership.
On September 14, 2007, The SCO Group, Inc. and its wholly owned
subsidiary, SCO Operations, Inc. (collectively, the “Debtors”), filed
voluntary petitions for relief under Chapter 11 of the United States
Bankruptcy Code in the Bankruptcy Court for the District of Delaware (the
“Bankruptcy Court”). The Debtors’ Chapter 11 cases are being jointly
administered under Case No. 07-11337(KG).
On July 27, 2009, the Bankruptcy Court held a hearing and took evidence
on cross-motions consisting of (a) the Debtor’s Motion for the Sale of
Property Outside the Ordinary Course of Business Free and Clear of Interest
and for Approval of Assumption and Assignment of Executor Contracts and
Unexpired Leases in Conjunction with Sale (the “Sale Motion”), and (b) the
Motions of Novell, IBM and the Office of the United States Trustee for
conversion of Debtors’ reorganization under Chapter 11 to a liquidation
proceeding under Chapter 7 of the Bankruptcy Code (collectively, the
“Conversion Motions”).
On August 5, 2009, the Bankruptcy Court issued its Memorandum Opinion,
and denied all of the Conversion Motions and the Sale Motion. Instead, the
Bankruptcy Court opted to appoint a Chapter 11 Trustee, and entered an Order
directing the Office of the United States Trustee to do so. Pursuant to this
Order, the Office of the United States Trustee would select, and the
Bankruptcy Court would thereafter consider and approve, a Chapter 11 Trustee.
On August 25, 2009, the Bankruptcy Court issued its order approving the
appointment of Edward N. Cahn, Esquire, as Chapter 11 Trustee. Mr. Cahn is a
former chief U.S. district judge for the Eastern District of Pennsylvania.
He has extensive experience in the area of complex litigation, including
intellectual property. Mr. Cahn received an honorary doctorate from Lehigh
University in 2002. He was a Tresolini Lecturer in Law at Lehigh University.
Mr. Cahn holds degrees from Yale Law School and Lehigh University, where he
graduated magna cum laude.
Pursuant to the Bankruptcy Code, and subject to the supervision and
approval of the Bankruptcy Court, the Chapter 11 Trustee will have authority
over the Debtors’ assets and affairs and the future course of the Debtors’
litigation against Novell, IBM. et al.
As you know, Darl McBride testified at trial in SCO v. Novell that he always files truthfully with the SEC, so you can take this to the bank: "...the Chapter 11 Trustee will have authority
over the Debtors’ assets and affairs and the future course of the Debtors’
litigation against Novell, IBM. et al." So that is who speaks for SCO now.
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| Authored by: TheBlueSkyRanger on Friday, August 28 2009 @ 01:45 PM EDT |
Dobre utka,
The Blue Sky Ranger[ Reply to This | # ]
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| Authored by: TheBlueSkyRanger on Friday, August 28 2009 @ 01:46 PM EDT |
Dobre utka,
The Blue Sky Ranger[ Reply to This | # ]
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| Authored by: complex_number on Friday, August 28 2009 @ 01:47 PM EDT |
Come Here. You know the rules.
---
Ubuntu & 'apt-get' are not the answer to Life, The Universe & Everything which
is of course, "42"
[ Reply to This | # ]
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| Authored by: Anonymous on Friday, August 28 2009 @ 02:15 PM EDT |
| The nym "skylinecowboy" added a 5 star review of FCGoals to the itunes store
site on 8/25/09. Skylinecowboy had also given similar reviews to the FCTasks
app just after its introduction and again on revisions in July 2009.
I
want to remind folks that creation of an "itunes" nym require a valid credit
card account, this is not a trivial sockpuppet.
Several other nyms repeat
from the earlier FCTasks review spamming episode: DustyNova, Wasatch18.
Much
of the commentary on this site has taken a skeptical approach to the assertion
that skylinecowboy==Darl McBride.
Let me remind everyone that Darl McBride
testified at the conversion hearing that he had secured a
$109,000 kited
check judgment against Mark Robbins' wife. Starting in May 2009, the online
skylinecowboy was "tweeting"about the $109,000 kited check judgment it had
been awarded against Mark Robbins' wife.
I admire skepticism, but doubting
the equivalence of skylinecowboy and McBride is unproductive given McBride's own
testimony under oath. [ Reply to This | # ]
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- So, skylinecowboy wants his cattleback (n/t) - Authored by: Anonymous on Friday, August 28 2009 @ 02:31 PM EDT
- So Darl is spamming for support of his own iPhone App - Authored by: Anonymous on Friday, August 28 2009 @ 02:34 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 02:52 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 03:07 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 03:31 PM EDT
- "skylinecowboy"-- the dossier - Authored by: Anonymous on Friday, August 28 2009 @ 05:07 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 05:35 PM EDT
- Aren't the Covey's Darl's in-laws or something? - Authored by: Anonymous on Friday, August 28 2009 @ 06:05 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 07:41 PM EDT
- "skylinecowboy" adds a 5 star review of FCGoals to itunes - Authored by: Anonymous on Friday, August 28 2009 @ 10:52 PM EDT
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| Authored by: capt.Hij on Friday, August 28 2009 @ 02:38 PM EDT |
The big question: After the new trustee sits in a closed room with Darl &
Co. and listens to their spiel, and after he sees the stack of legal rulings who
does this person go to to get a second opinion. I cannot imagine getting
something like this dumped on me if I am not knowledgeable in this field or have
been keeping track. I feel bad for this poor guy, but I suppose that is the
nature of being appointed a trustee. This is probably not in the list of best
jobs in the world, but in this case he is dealing with folks who I personally
feel know how to really dance and spin and are well practiced. [ Reply to This | # ]
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| Authored by: Anonymous on Friday, August 28 2009 @ 04:21 PM EDT |
| Darl didn't sign this 8k, it was signed by Ken Nielson. [ Reply to This | # ]
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| Authored by: Anonymous on Friday, August 28 2009 @ 04:40 PM EDT |
I don't know this judge, but I hear he has some connection to the PAED court. If
that is true, PAED is the polar opposite of the rocket docket in Texas. I fought
a single civil defamation suit in PAED, through three different judges, with pro
se defendant vs. pro se plaintiff and it took five years from complaint to
judgment. Having this guy appointed as trustee is not necessarily a good thing.[ Reply to This | # ]
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| Authored by: Anonymous on Friday, August 28 2009 @ 06:15 PM EDT |
I'm not sure what the dollar amount of SCO's creditors and Novell's judgment is.
But it seems to me if you offered to cover the whole SCO bankruptcy estate in
exchange for clear title to whatever Unix is at stake, the trustee would have to
listen. And Novell could certainly use the money.
How to justify it to shareholders? Protecting your Linux business (how much is
that worth annually?) and saving further legal expenses if a clueless jury
awards SCO the Unix copyrights and you have to go to trial before another
clueless jury.
[ Reply to This | # ]
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| Authored by: relic on Friday, August 28 2009 @ 06:51 PM EDT |
I have worked with a court appointed bankruptcy trustee twice over a span of 35
years. In both cases, I was employed by companies incorporated in Delaware. In
both cases, the "super" creditors petitioned for conversion and were
denied. One successfully emerged from Ch 11, the other almost immediately
liquidated.
This is only my experience of what these particular situations were like.
Others may have quite different experiences.
My industry is manufacturing and my roles in both were middle management at the
time the trustee was appointed.
The trustee comes in the door with the understanding and viewpoint that
management in general has been ruled incompetent by the court. He does not come
in as a helpful friend. He may also bring in trusted consultants familiar with
the industry.
He also trusts very little advice from the major creditors because they will
naturally work to their own advantage over the smaller creditors.
Eventually, all executive level management was dismissed in both cases, but not
all at the same time. If there was any direct value to keeping someone, they
stayed until they were no longer useful
The first thing that happened was a meeting where it was clearly understood that
the trustee had final say in everything. You could not buy salt for the
lunchroom without approval.
Next was a review for compliance with labor and tax laws. If a variance was
found and could not be cured immediately, conversion happened.
The second company had not paid its workmen's comp premium in 6 months and had
two claims against it. Due to that liability, he shut the business immediately.
Later, the corporate veil was pierced and the owners became personally liable
for the injuries.
Then the trustee pulled in financial information, reviewed liabilities, income
trends, expected income, and a/r aging. He looked specifically for payouts that
rewarded prior management's behavior or benefitted any one creditor unfairly
over another. If he found any, he went after them.
Hard cash was the only consideration, plans for future development were wiped
off the table.
Then they addressed management practices, roles, and responsibilities. Everyone
was interviewed and reviewed.
Both trustees had the finest ability to detect answers that were inaccurate or
incomplete, whether intentional or incompetent. Your answers to their questions
determined what role or any you would play in the future. Everyone had to earn
their right to stay.
In one day, I went from inventory control manager to general manager. Everyone
above me was gone. My first job assignment was to cut 2 shifts of production at
one plant, one shift at a second, and completely close the third. I laid off
over 400 people. I went home, threw up, got drunk, and threw up again. I went
back to work the next day.
I also took a pay cut, near-total loss of benefits, and saw very little of my
family for several months. But we survived and the company is still in business
and doing well.
Life with a trustee is not easy or business as usual. SCO is not a pleasant
place to be right now. these guys are tough and serious. They deal only with
"what is", not "what could be". They are there to protect
the interests of the biggest risk takers in continuing the business - the
creditors.[ Reply to This | # ]
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| Authored by: rsteinmetz70112 on Friday, August 28 2009 @ 10:42 PM EDT |
It seems to me Darl will leave SCO very soon. He may join with some of his new
BFFs to try to buy it back.
All we know about Darl indicates to me that he is after a big score and won't
sit around trying to fix SCO.
By his association with Norris and the Pelican Boxers he is already moving in
that direction.
---
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
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| Authored by: Anonymous on Friday, August 28 2009 @ 11:25 PM EDT |
Meaning how much is he bound to run the company in a lawful
and ethical manner?
Let us for example say that a trustee was appointed in a car
rental company. He decides that a fleet cars bought the last
year should be sold. The cars are in deplorable condition.
Can he order them put on ebay and listed as in excellent
condition? Can he order the odometers rolled back?
If above all the trustee is motivated to get creditors as
much as he can even at the cost of ethical and legal
standards, then the trials could go on. For example if he
judges that there is no legal merit in the cases, but that
he can get a settlement just to reduce nuisance value, he
might continue.[ Reply to This | # ]
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| Authored by: Anonymous on Saturday, August 29 2009 @ 02:08 AM EDT |
Is he paid from the estate, i.e. from SCO? If so, perhaps the decision to
convert to Chapter 7 would occur when the Trustee becomes confident that SCO is
about to (or already has) run out of money to pay him. I doubt that most
trustees would volunteer to stick around, unpaid, for that lottery ticket.[ Reply to This | # ]
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