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SCO's April Monthly Operating Reports
Tuesday, July 06 2010 @ 03:19 PM EDT

More hilarity ensues as SCO files its MORs for April. As you'll recall, it was in March that the Yarro loan went through, and both Blank Rome and Ocean Park got paid, $335,296 and $261,645 respectively. Now what happened in SCOville in the following month?

Oh noes. I think SCO is losing money.

: D

My favorite notation is on page 14 of the SCO Operations MOR:

Total Cash in SCO Ops BS
Hey, hey, SCO. Watch your language on Groklaw please. All right. Kidding. The serious part is how will they pay Yarro back? It'd be a cryin' shame if they had to let him have the company assets instead, what with the professionals getting paid and all. Hardy har. Wait. Isn't that what the mob does? So I hear tell. They loan you money and when you can't pay it back, they take your restaurant.

From the Seattle PI obituary of a Mr. Colacurcio, who informed the interviewer prior to his death, just for the record, that he had no connection to any mob, that it's just "folklore":
Sometime after his release, Colacurcio got into the vending business with his brothers -- installing cigarette machines, jukeboxes and pinball machines in local taverns and clubs.

"From the vending business, we loaned money to different bars, restaurants, lounges," Colacurcio says. "And (when) they weren't able to pay, we took over several of them to make them (profitable)."

To make them profitable. I believe that is Mr. Yarro's dream as well, so they have at least one thing in common, anyway.

Here you go:

07/06/2010 - 1131 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 4/30/10 (The SCO Group, Inc.; 07-11337) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Attachments: # 1 Certificate of Service) (Fatell, Bonnie) (Entered: 07/06/2010)

07/06/2010 - 1132 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 4/30/10 (SCO Operations, Inc.; 07-11338) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Attachments: # 1 Certificate of Service) (Fatell, Bonnie) (Entered: 07/06/2010)

Shall we crunch some numbers?

  


SCO's April Monthly Operating Reports | 247 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections here
Authored by: The Cornishman on Tuesday, July 06 2010 @ 03:37 PM EDT
Please change the title thusly: Error -> Correction

---
(c) assigned to PJ

[ Reply to This | # ]

Off Topic Here
Authored by: The Cornishman on Tuesday, July 06 2010 @ 03:38 PM EDT
Please post here for topics not relevant to the article, but which you think
might find a place in the hearts of Groklaw readers

---
(c) assigned to PJ

[ Reply to This | # ]

Newspicks thread
Authored by: The Cornishman on Tuesday, July 06 2010 @ 03:41 PM EDT
For discussion of newspick items from the sidebar. Please change the title so
we know which one you're commenting on

---
(c) assigned to PJ

[ Reply to This | # ]

COMES cometh here
Authored by: The Cornishman on Tuesday, July 06 2010 @ 03:45 PM EDT
COMES transcriptions here, please, if you have the time and the inclination. Thank you.

---
(c) assigned to PJ

[ Reply to This | # ]

Bottom Line
Authored by: capt.Hij on Tuesday, July 06 2010 @ 03:50 PM EDT
For April:


Gross Profit: $441,250
Net Profit before fees: ($534,201)

Professional fees: $642,145

they are paying more money to not go bankrupt then they are in just their normal operations. Amazing.

[ Reply to This | # ]

SCO's April Monthly Operating Reports
Authored by: cassini2006 on Tuesday, July 06 2010 @ 03:58 PM EDT

I always thought the point of the loan was to guarantee the trustee got paid, even if the litigation failed.

The fundamental problem is that no one wants to pipe up and say: "The litigation lottery failed. It never really had a chance of working."

Even to this day, SCO's entire hope of future success is pinned to winning litigation.

[ Reply to This | # ]

on the bright side ...
Authored by: nsomos on Tuesday, July 06 2010 @ 04:10 PM EDT
On the bright side, at least these PDFs are legible,
unlike some prior MORs where it seemed they were trying
to hide stuff by having smudged documents.

While it would not be on these MORs, we still don't
know if the constructive trust payment to Novell
that was approved by Gross was ever actually
made and if that check cleared or not. Just because
Cahn asked and Gross approved does not mean it is a
done deal.

SCOG has also missed a marketing opportunity this 4th
of July. They could have sold some private labeled
fireworks with SCO prominently marked on them.
Many would gladly have bought some, if only to
vicariously 'blow them up'. Who knows ... if they manage
to drag things out for much of another year, they could
always sell such things later.

Or how about that old SCO sign and logo from the building.
They could sell the opportunity for interested folks to
shoot up the old signage. There are many who would pay
for the pleasure of putting a few rounds into such things.

Cahn is certainly missing some money making opportunites.

[ Reply to This | # ]

I Wonder How Novell Got Paid?
Authored by: rsteinmetz70112 on Tuesday, July 06 2010 @ 04:21 PM EDT
Looking over the statement, it's hard to see where SCO had Novell's money
stashed. Novell was supposed to be paid the money SCO held in trust by the 15th
of June. It looks to me like after another month of losses SCO might not have
that much cash.

---
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 | # ]

Google Spreadsheet of the "Controlled Flight into Terrain"
Authored by: Anonymous on Tuesday, July 06 2010 @ 04:34 PM EDT
I have a revised Google spreadsheet for the Approved and Pending Legal bills.

Important Change: The "Escrow Legal Liability" line item shows a huge jump to $347,300. This is the liability line item used for the Boies Expense billing. This provide good evidence of the size of the Boies billing for the Novell Trial.

Note that the available Cash goes negative as soon as the Novell Trial Expenses are paid.

[ Reply to This | # ]

SCO's April Monthly Operating Reports
Authored by: Anonymous on Tuesday, July 06 2010 @ 04:37 PM EDT
Hardy har. Wait. Isn't that what the mob does? So I hear tell. They loan you money and when you can't pay it back, they take your restaurant.
Isn't that what banks do? They loan you money and when you can't pay it back, they take your house.

[ Reply to This | # ]

Pinball machines and pool tables
Authored by: gstovall on Tuesday, July 06 2010 @ 06:09 PM EDT
My father saw plenty of that when he was a meat salesman serving NW Chicago in
the 1970s...he told me stories of how his Chicago restaurant/tavern/bar
customers had to rent their pool tables from a particular vendor. If the tavern
owner got uppity and tried to install his own self-purchased table, a group of
big guys would come in, play pool, and somehow...the felt would end up ripped to
shreds.

[ Reply to This | # ]

Ken Nielsen dates the forms June 16th
Authored by: Anonymous on Tuesday, July 06 2010 @ 06:27 PM EDT
Ken Nielsen signed and dated these MOR forms on June 16, 2010.

On June 18th, Blank Rome and OPA began submitting overdue billing.

The Chapter 11 legal liability line item reflects some of the new billing (BR December, OPA Feb + March), but not the $199,000 bill submitted by Blank Rome for January and February 2010.

By closing the books on June 16th, Nielsen has avoided recognizing the BR accrued liability for work performed in Jan and Feb.

By freezing time at the June 16th date, SCO and BR are presenting a better balance sheet than its actual condition.

They are still gaming the court. This feels to me like a material mistatement, since by July 6th, they know the information is inaccurate.

[ Reply to This | # ]

July 12 hearing will also be canceled -- and every hearing after that
Authored by: Anonymous on Tuesday, July 06 2010 @ 07:05 PM EDT
I've decided that all future status hearings will be canceled, and SCO will
remain in bankruptcy forever. So, the IBM, Red Hat and Suse cases will also be
stayed forever. And no one with any standing will object. The SCO bankruptcy
will end up being lifetime pensions for Cahn and his cronies.

This case will die of boredom. Since the desktop will end up becoming
synchronized offshoots of tablets, Microsoft will die. SCO will die, too, but
the cases will remain stayed.

[ Reply to This | # ]

SCO's April Monthly Operating Reports
Authored by: Anonymous on Tuesday, July 06 2010 @ 07:09 PM EDT
I see that they are still claiming $2,042,600 for "Goodwill." That's
a perfect match for Ralph's loan.

[ Reply to This | # ]

Meeting expectations
Authored by: Anonymous on Tuesday, July 06 2010 @ 07:14 PM EDT
Looking and Microsoft and SCO, I'm going to predict that they will always meet
analysts' expectations.

The analysts' expectations will continually drop. And the companies will meet
expectations and claim victory. One day, the analysts will predict the companies
will disappear. The companies will again meet expectations and claim victory.

[ Reply to This | # ]

A First
Authored by: Laomedon on Tuesday, July 06 2010 @ 07:18 PM EDT

This latest MOR is the first one where Post-Petition Liabilities exceed all assets by $ 336,418 (not to mention that the value of some assets is questionable- e.g. $2,042,600 receivables from SCO Group).

This should raise some eyebrows at the Trustee's office; Being unable to pay post-petition liabilities is a no-no in Chapter 11. Maybe the court will notice as well.

Don't get your hopes up though, what would apply to a normal Chapter 11 bankruptcy does not seem to apply here.

MOR as of Assets - P-Pet Lia Assets – Post-pet. Liab
12/31/08 9,032,859 4,537,074 $4,495,785
01/31/09 9,274,557 5,333,257 $3,941,300
02/28/09 8,777,928 5,089,521 $3,688,407
03/31/09 8,287,296 4,840,922 $3,446,374
04/30/09 8,663,022 5,516,264 $3,146,758
05/31/09 8,107,468 5,176,751 $2,930,717
06/30/09 7,749,397 4,908,953 $2,840,444
07/31/09 6,826,950 4,569,122 $2,257,828
08/31/09 6,839,060 4,963,806 $1,875,254
09/30/09 6,685,241 4,964,655 $1,720,586
10/31/09 6,775,401 5,172,368 $1,603,033
11/30/09 6,638,571 5,102,421 $1,536,150
12/31/09 6,508,364 4,735,978 $1,772,386
01/31/10 6,013,942 5,097,155 $916,787
02/28/10 5,716,482 4,971,172 $745,310
03/31/10 6,806,022 6,167,089 $638,933
04/30/10 6,942,759 7,279,177 -$336,418

[ Reply to This | # ]

SCO's April Monthly Operating Reports Advertising and Travel and Entertainment....
Authored by: Anonymous on Tuesday, July 06 2010 @ 11:40 PM EDT
Advertising in April..... Was that those Craigslist Ads

"Small company looking for kindhearted juror or jurist to vote our
position."

Travel and Entertainment expenses.... since the trial was in UT, and they are
in UT, this must have been bringing in strippers for the expert witnesses....

I wonder though. Since they didn't get that kindhearted juror or jurist, will
they be suing Craigslist now too?

(Forgive the language or any other violations of the COC here that this post may
bring up. I couldn't resist the urges, but I shall in the future).

Have a great day:)
Patrick.

[ Reply to This | # ]

So called loan...
Authored by: GriffMG on Wednesday, July 07 2010 @ 03:24 AM EDT
The facility from Yarro exist(ed) for one reason, to pay the legal advisors.

There is probably a month or so left in the purse.

---
Keep B-) ing

[ Reply to This | # ]

Credit worthiness
Authored by: Anonymous on Wednesday, July 07 2010 @ 04:23 PM EDT
The big difference is that banks (well, excluding the US subprime market of
recent history) don't lend money to people with no chance of people able to pay
it back. Yes, they'll seize the assets of a secured loan if you default and
nothing else works, but they won't lend you the money if they think that is
actually likely to happen.

[ Reply to This | # ]

  • Credit worthiness - Authored by: Anonymous on Wednesday, July 07 2010 @ 05:51 PM EDT
Prediction
Authored by: Anonymous on Wednesday, July 07 2010 @ 07:46 PM EDT
On the 12th, it's either a visit from the PIPE fairy or Chapter 7.

My (metaphorical) money's on Chapter 7. The charade isn't worth playing any
longer, even for the PIPE fairy.

MSS2

[ Reply to This | # ]
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