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SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Thursday, February 25 2010 @ 08:20 PM EST

Is there any way today could be any busier? Now, on top of the filings and rulings and the hearing today in the SCO v. Novell litigation, there were also some filings in SCO's bankruptcy in Delaware. Judge Gross did as SCO's trustee asked and reset the deadline for objections to the Yarro loan offer to February 26. Remember that ring around the rosie?

And one of SCO's bankruptcy lawyers, the firm of Pachulski Stang, filed its 8th bill, a quarterly covering July 1, 2009 through September 30, 2009, which hasn't yet been paid, it turns out, and it wants to get paid an interim allowance of $$55,049.31. Well, one of SCO's ex-lawyers. They're done in the bankruptcy now that the SCO trustee is on the job.

Shocker. Who'd ever expect SCO not to timely pay its bills, huh? I wonder if Pachulski Stang ever read the parable about the scorpion and the frog crossing the river together? Remember what happens when the scorpion makes it safely to the other side?

Here are the filings:

02/23/2010 - 1062 - Order Vacating Order Granting Motion of Chapter 11 Trustee to Shorten Notice and Response to Trustee's Motion for Order (I) Authorizing Debtors Estates to Obtain PostPetition Financing and to Grant Security Interests and Superiority Administrative Expense Status Pursuant to 11 U.S.C. §§ 105, 363(c), 364(c), 364(e) AND 507(b); (II) Modifying the Automatic Stay Pursuant to 11 U.S.C. § 362; and (III) Granting Other Relief( related document(s) 1051 , 1052 , 1053 , 1057 ) Order Signed on 2/23/2010. (SDJ) (Entered: 02/23/2010)

02/24/2010 - 1063 - Certificate of No Objection (No Order Required) Regarding Twenty-Seventh Monthly Application of Pachulski Stang Ziehl & Jones LLP, as Co-Counsel to the Debtors and Debtors in Possession, for the Period from November 1, 2009 through November 30, 2009 (related document(s) 1047 ) Filed by The SCO Group, Inc.. (Attachments: # 1 Certificate of Service and Service List) (Makowski, Kathleen) (Entered: 02/24/2010)

02/25/2010 - 1064 - Application for Compensation and Reimbursement of Expenses for the Period from July 1, 2009 Through September 30, 2009, Eighth Quarterly Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 3/17/2010. (Attachments: # 1 Notice # (2) Exhibit A # 3 Exhibit B # 4 Exhibit C # 5 Proposed Form of Order # 6 Certificate of Service re Fee App # 7 Certificate of Service re Notice Only) (O'Neill, James) (Entered: 02/25/2010)

This quarterly bill is for $46,474.50 for 118 hours, plus expenses of $8,574.81. That includes $2,605.10 for "Reproduction Expense", almost $700 for couriers, $108 and some pennies for DHL and Federal Express, and $146 for "Working Meals". This is a communicating bunch. That's actually because of the role they played, kind of coordinating all the legal teams.

And here's what they tell the court about the bills they filed in September and November, 2009 and January of 2010:

6. On September 25, 2009, PSZ&J filed its Twenty-Third Monthly Application of Pachulski Stang Ziehl & Jones LLP for Compensation and for Reimbursement of Expenses as Counsel to the Debtors and Debtors in Possession for the Period from July 1, 2009 through July 31, 2009 ("Twenty-Third Monthly Fee Application") requesting $35,004.00 in fees and $4,222.38 in expenses. PSZ&J has not received any payment of fees or expenses requested in the Twenty-Third Monthly Fee Application. A true and correct copy of the Twenty-Third Monthly Fee Application is attached hereto as Exhibit A.

Same for all the bills listed. They are not being paid. Maybe because SCO is SCO? Maybe because SCO really ought to be in Chapter 7, since it has no money? Wasn't it SCO's lawyers, though, who argued that everything but the litigation had to wait, that SCO's chance was finally here, to have its day in court in the litigation lottery? Now it's SCO's lawyers who must wait to be paid, like all the other hapless SCO creditors?

I surely would never recommend that you skip out on your lawyer, actually. Lawyers are more like this frog, with the ultimate goal being something like this, if they don't get paid. Lawyers like to get paid.


SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid | 132 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: nattt on Thursday, February 25 2010 @ 09:29 PM EST
No surprises there eh?

[ Reply to This | # ]

Gross gives Cahn what he wants
Authored by: Anonymous on Thursday, February 25 2010 @ 09:36 PM EST
And no surprise here either.

[ Reply to This | # ]

SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: kalten on Thursday, February 25 2010 @ 09:47 PM EST
Remember what happens when the scorpion makes it safely to the other side?

The story's still apropos, but the scorpion didn't make it to the other side. It was his nature, remember?

[ Reply to This | # ]

We'd Like to Be Paid
Authored by: Gringo on Thursday, February 25 2010 @ 09:49 PM EST
Fat chance!

[ Reply to This | # ]

Corrections Thread
Authored by: bugstomper on Thursday, February 25 2010 @ 09:53 PM EST
Corrections here, error->correction or s/error/correction/ in Title box for
easy scanning

[ Reply to This | # ]

Off Topic threads
Authored by: bugstomper on Thursday, February 25 2010 @ 09:54 PM EST
Stay off topic here. Use HTML to make conveniently clicky links. As always, the
Preview button is your friend.

[ Reply to This | # ]

News Picks Thread
Authored by: bugstomper on Thursday, February 25 2010 @ 09:56 PM EST
Post comments on News Picks articles in this thread, with the title of the
article in the Title box for easy scanning, and HTML for easy clickability.

[ Reply to This | # ]

COMES goes here
Authored by: bugstomper on Thursday, February 25 2010 @ 09:58 PM EST
Any more text translations of COMES documents can go here, with HTML markup
posted as Plain Old Text to make it easy for PJ to copy and paste

[ Reply to This | # ]

SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: charlie Turner on Thursday, February 25 2010 @ 10:31 PM EST
Did I detect a grin on those frog's faces? SCO's dying carcass hasn't been
picked and scraped and chewed clean just yet. Looks like the scavengers are
getting ready to start circling.

[ Reply to This | # ]

I hope Pachulski Stang never gets paid
Authored by: Anonymous on Thursday, February 25 2010 @ 11:02 PM EST
After all, why should they? All they did is try to figure out ways to stiff the
other creditors. It serves them right in my book.

[ Reply to This | # ]

SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: benw on Friday, February 26 2010 @ 03:35 AM EST
I can't think of the scorpion-and-the-frog parable without thinking of "The
Crying Game". I wonder what surprises this trial may bring.

[ Reply to This | # ]

SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: Anonymous on Friday, February 26 2010 @ 03:45 AM EST

The Yarro loan raises an interesting question if it is approved. If memory
serves me correctly the terms state (if tSCOg defaults or goes into chapter 7)
there would be no prior creditors and that Yarro would have super-priority over
any tSCOg assets. Would this include the fees run up by the bankruptcy

[ Reply to This | # ]

SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Authored by: ghost on Friday, February 26 2010 @ 07:32 AM EST
Question: Would not a post-petition inability to pay debts accrued as part of
the Ch. 11 operation force the whole thing into chapter 7 as a matter of law,
with liability for the trustee, as he has been running the company knowing that
it can not pay the bills for work ordered??

Also, i still don't see him/them having filed the MOR's as required by the law?

Perhaps it is time for the court to decide enough is enough, and turn this
turkey into a CH7, where it belongs, and stop further harm being done to the
creditors, where possible, by the game-playing that is going on?

The court action can still proceed even if the CH11 is converted to a CH7, if i
have understood it all correctly..

[ Reply to This | # ]

Didn't Berger Singerman get paid?
Authored by: sk43 on Friday, February 26 2010 @ 09:38 AM EST
Working for companies in bankruptcy must always come with the risk of not
getting paid in the end.

Didn't BS require SCO to establish an escrow account in advance, and then pay
themselves from it at the end? Perhaps PSZ&J could have done the same

[ Reply to This | # ]

Groklaw should submit a bill too
Authored by: The Mad Hatter r on Friday, February 26 2010 @ 09:54 AM EST

After all of the work that PJ has done, pointing out all of their mistakes to
TSCOG, I think that she deserves to be paid. I know that this isn't why she
started Groklaw, however services were rendered, quite valuable services, which
if TSCOG had paid attention to them, would have prevented the need to file for
Chapter 11.

Yes, I know that TSCOG didn't ask for these services. However in my not so
humble opinion, the services that Groklaw provided for free, without asking for
recompense, were more valuable than those provided by the 'litigation


[ Reply to This | # ]

Authored by: jpvlsmv on Friday, February 26 2010 @ 10:05 AM EST
I'm sure that once SCO files its monthly operating reports for September, that
it'll be clear why they haven't been paying their bills.

After all (as I've said before) no company can be expected to keep track of all
its money, especially in bankruptcy.


[ Reply to This | # ]

The scorpion
Authored by: Yossarian on Friday, February 26 2010 @ 10:15 AM EST
>the scorpion and the frog

Actually, SCO's actions remind me more the story of the
scorpion and the camel, see

A scorpion wanted to cross the Suez Canal, but being unable
to swim, he asked the camel to help him. Said the camel, "I
won't take you on my back. How do I know you will not give
me a fatal sting on the way?" Answered the scorpion, "Do you
think I will sting you and have us both drown in the Canal?"

The camel was convinced and took the scorpion on his back.
Midway across the scorpion stung the camel and both began
to drown. Said the surprise camel: "Look, now we are both
drowning. Why did you sting me?"

Said the scorpion in a sly smile, "Do you expect logical
events in the Middle East?"


My point is that the US court system goes out of its way
to support frivolous law suits like SCO's, while punishing
logical players like IBM. And PJ knows that very well, and
can quote many cases. But for some reason, like the good
natured camel, she expects players in the court system to
act in a logical way.

[ Reply to This | # ]

Novell Objects BK Loan #1065
Authored by: RFD on Friday, February 26 2010 @ 04:46 PM EST
The Motion is probably the last opportunity for the Court to take steps to
protect creditors in case the litigation central to the Debtors’ and Trustee’s
concept of the purpose of these cases proves unsuccessful. Novell respectfully
submits that the Court should not approve the Motion unless a reliable mechanism
is established for ensuring that creditors get paid no matter the outcome of the
litigation. In any event, the Court should deny the Motion until after there is
proper disclosure and an evaluation of the propriety of its terms.

Eschew obfuscation assiduously.

[ Reply to This | # ]

Where are SCO's Financial Statements ?
Authored by: Anonymous on Friday, February 26 2010 @ 04:51 PM EST
Sco where are they .

Is this the reason someone wants to lend SCO 2 million Dollars .
A quote from Daryl around 2003

Q: What's to prevent IBM from scooping up all your shares on the open market and
doing business with you that way?

McBride: Well, they'd have to scoop up all the shares from one shareholder,
first, that basically owns about 50 percent. It's not as simple as it would be
with many public companies that have 95 percent of their stock in the public
float, or 80 percent. The point is we have one shareholder 85% whom they'd
basically have to convince to make that happen.-

What happened to the Bankrupcy Judge.
How much does a Trustee cost now .

[ Reply to This | # ]

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