decoration decoration
Stories

GROKLAW
When you want to know more...
decoration
For layout only
Home
Archives
Site Map
Search
About Groklaw
Awards
Legal Research
Timelines
ApplevSamsung
ApplevSamsung p.2
ArchiveExplorer
Autozone
Bilski
Cases
Cast: Lawyers
Comes v. MS
Contracts/Documents
Courts
DRM
Gordon v MS
GPL
Grokdoc
HTML How To
IPI v RH
IV v. Google
Legal Docs
Lodsys
MS Litigations
MSvB&N
News Picks
Novell v. MS
Novell-MS Deal
ODF/OOXML
OOXML Appeals
OraclevGoogle
Patents
ProjectMonterey
Psystar
Quote Database
Red Hat v SCO
Salus Book
SCEA v Hotz
SCO Appeals
SCO Bankruptcy
SCO Financials
SCO Overview
SCO v IBM
SCO v Novell
SCO:Soup2Nuts
SCOsource
Sean Daly
Software Patents
Switch to Linux
Transcripts
Unix Books
Your contributions keep Groklaw going.
To donate to Groklaw 2.0:

Groklaw Gear

Click here to send an email to the editor of this weblog.


Contact PJ

Click here to email PJ. You won't find me on Facebook Donate Paypal


User Functions

Username:

Password:

Don't have an account yet? Sign up as a New User

No Legal Advice

The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

Here's Groklaw's comments policy.


What's New

STORIES
No new stories

COMMENTS last 48 hrs
No new comments


Sponsors

Hosting:
hosted by ibiblio

On servers donated to ibiblio by AMD.

Webmaster
SCO Files MORS for January and Ocean Park Asks for Money
Wednesday, April 06 2011 @ 12:37 PM EDT

SCO has now filed its Monthly Operating Reports for January. They have some inscrutable and/or cynical items and some I don't recall seeing before. Accounts Receivable = $246,754. Cash on hand at the beginning of the month = $804,709.00. Disbursements = $456,100. Wow. Remember that SCO got a $2M loan not that long ago, yet cash at the end of the month? $601,752.

Nothing for Novell in January. Cumulative to date receipts in the "Novell SVRx Fee" category were $881,526, but nothing at all in January. Disbursed to date since the bankruptcy began in 2007? $478,486. So.... Wait. That's not a debt. That's Novell's money from day one, not money owed to Novell. So, SCO will skulk out of bankruptcy court having converted Novell's money to its own use and nothing happens? Man, Delaware is a trip. So is SCO.

03/22/2011 - 1258 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 1/31/11 (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) (Tarr, Stanley) (Entered: 03/22/2011)

03/22/2011 - 1259 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 1/31/11 (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) (Tarr, Stanley) (Entered: 03/22/2011)

03/24/2011 - 1260 - Claims Register in alphabetical and numerical order can be viewed upon request at the clerk's office. Filed by Epiq Bankruptcy Solutions LLC fka Bankruptcy Services, LLC. (JRK) (Entered: 03/24/2011)

04/06/2011 - 1261 - Certificate of No Objection Regarding Sixteenth Monthly Application for Compensation of Ocean Park Advisors, LLC for the Period January 1, 2011 to January 31, 2011 (related document(s) 1254 ) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley) (Entered: 04/06/2011)

04/06/2011 - 1262 - Monthly Application for Compensation of Ocean Park Advisors, LLC (Seventeenth) for the period February 1, 2011 to February 28, 2011 Filed by Ocean Park Advisors, LLC. Objections due by 4/26/2011. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B # 4 Certificate of Service) (Tarr, Stanley) (Entered: 04/06/2011)

Look at the professional fees SCO has paid out since it first filed for bankruptcy protection:
$5,782,401
+ $472,791 expenses
$6,255,192
Ocean Park's 17th bill is for a meager $8,000 or so. Still, they'd better hurry and get paid before SCO goes poof. Nah. Professionals get paid, I noticed over the years. In fact, isn't that figure about what SCO had when it first filed for bankruptcy protection?

Say, look at page 6 of #1258 [PDF]. "Loans to Insiders" in the amount of $748,863 in January, and $1,326,293 cumulative to date. What is that?

[ Correction: I misread it. The "loans to insiders" category is blank, and one line down is "other".]

And why would Japan's book value dip from $765,366 in September of 2007 when SCO filed for bankruptcy and now it's only listed as valued at $685,794? None of the other subsidiaries changed, except for SCO China, which was sold a while back.

But here's the truly amazing figure: guess what SCO's net payroll was in January? $100,614. I kid you not. That would be one executive? One CFO? Or one salesman and someone to answer the phones? What is clear is that whatever unXis wanted these assets for, it's not for the fabulous business.

The SCO Group as we knew it is no more, I conclude, ladies and gentlemen. It is become a wasteland, where occasional desultory winds move the tumbleweeds aimlessly here and there down the dusty and nearly empty streets.


  


SCO Files MORS for January and Ocean Park Asks for Money | 248 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections
Authored by: tyche on Thursday, April 07 2011 @ 12:46 AM EDT
Please indicate where the correction needs to be made, and what the incorrect
and correct form are. Thanks

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

Off Topic
Authored by: tyche on Thursday, April 07 2011 @ 12:48 AM EDT
Sound off on things that aren't related to the main topic. Where possible,
include links to back up what you are talking about. Thanks

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

News Picks
Authored by: tyche on Thursday, April 07 2011 @ 12:50 AM EDT
Please indicate the title and link of the news pick you are commenting on.
Thanks

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

Comes
Authored by: tyche on Thursday, April 07 2011 @ 12:53 AM EDT
For the "ways and means" committee who have the ways and means to
transcribe the Comes documents. Thanks

Craig
Tyche

---
"The Truth shall Make Ye Fret"
"TRUTH", Terry Pratchett

[ Reply to This | # ]

The lightbulb came on
Authored by: argee on Thursday, April 07 2011 @ 01:46 AM EDT
It occurs to me that perhaps Novell influenced or gave a
tip to SEC. I can't imagine that SCO can sell itself with
the stock tied up. That works to Novell's advantage, I
would think.


---
--
argee

[ Reply to This | # ]

What is there to say ?
Authored by: dmarker on Thursday, April 07 2011 @ 05:12 AM EDT

But, (take your pick)

1) yawn
2) "I don't believe it !"
3) "So who pays them :) "
4) "Is this how corporate law unfolds in the US ?"

(add your own :) )

D

[ Reply to This | # ]

  • What is there to say ? - Authored by: Anonymous on Thursday, April 07 2011 @ 05:51 AM EDT
  • What is there to say ? - Authored by: Anonymous on Thursday, April 07 2011 @ 07:59 AM EDT
  • D - Authored by: Anonymous on Thursday, April 07 2011 @ 02:53 PM EDT
  • What is there to say ? - Authored by: Anonymous on Thursday, April 07 2011 @ 07:44 PM EDT
After watching all this, I wonder...
Authored by: Anonymous on Thursday, April 07 2011 @ 06:14 AM EDT
Has any bankruptcy judge ever been href="http://en.wikipedia.org/wiki/Impeachment_in_the_United_S
tates">impeached<
/a>? Because this Judge sure
seems to play fast and loose with the letter of
the law.

[ Reply to This | # ]

That's why they _must_ win at court
Authored by: YurtGuppy on Thursday, April 07 2011 @ 09:21 AM EDT
They must win so that they can pay their debts.

So when they defeat Novell and go on to defeat IBM
_then_ they can pay their debts to Novell.

Until then they have to keep the shell of the company
together and keep paying the lawyers and accountants
and business consultants and donuts for the meetings, etc. etc.

It's all very straightforward ;-)

---
every guppy is a half-full kind of guy

[ Reply to This | # ]

Novell SVRx Fee
Authored by: Anonymous on Thursday, April 07 2011 @ 09:28 AM EDT
Strange designation "Fee". One of the court cases SCO lost designated
it not a fee but a collection in trust. It has to be a fee for the contract to
be non-executive. But the case that started the whole bankruptcy thing ruled
that the money was collected "in trust".

The fact that the court case that started the whole bankruptcy filing ruled that
the money was collected "in trust" is very very significant.

Judge Cahn is a trustee in bankruptcy. He must be aware that the SysV money is
collected in trust by SCO. Failure to pay that is likely to result in at least
the loss of the trustee's bond if not more.

I am not a lawyer but I see some complications here. Including deliberate
obfuscation of the trust obligation.

[ Reply to This | # ]

Net payroll is monthly, not annual
Authored by: Anonymous on Thursday, April 07 2011 @ 09:35 AM EDT
And there are no loans to insiders.

[ Reply to This | # ]

Conversion or Theft?
Authored by: delestoran on Thursday, April 07 2011 @ 09:35 AM EDT
SCO had a contract with Novell to handle certain money that belonged to
Novell. SCO takes that money and spends it without ever giving it to Novell.
Is this conversion or theft?

If it is conversion, then SCO will simply cry "we're broke" and that's
it. If it is
theft, then why doesn't someone file a criminal complaint? Someone should
go to jail for this.

Of course, this would not be the first time that a bankruptcy court converted
someone else's property into cash and distributed it away from who actually
owned it. I once worked for a company that was having some rather
expensive hardware built and the company building it filed for Chapter 7.
The expensive hardware and associated parts were owned by my company,
but by the time we found out about the filing, the whole thing had been sold
for scrap and the money distributed to the creditors. The filing company
failed to notify the court that it was our property and we where told that it
was just tough luck.

[ Reply to This | # ]

SCO Files MORS for January and Ocean Park Asks for Money
Authored by: Jeffrey on Thursday, April 07 2011 @ 09:49 AM EDT
I'm sorry. But if you collect my money for me and abscond with it, it's
stealing. And if I have my way, someone is going to give me ALL of my money,
plus interest, or go to jail. I'd press charges. Wouldn't you?

That sounds simple enough. Why hasn't this happened?
<tap><tap><tap>Hellooo. Novell? Anyone home?

"Corporations" cannot make decisions, decisions are made by people.
And when you do not know who made a specific decision, then those at the top
shoulder that burden.

Someone has to go to jail here! Why isn't anyone going to jail?!

(Frankly, I think the DE Bankruptcy judge should go to jail too, but I'll save
that for another rant.)

[ Reply to This | # ]

SCO Files MORS for January and Ocean Park Asks for Money
Authored by: nuthead on Thursday, April 07 2011 @ 10:18 AM EDT
I'm still waiting for Judge Gross to submit his bill.

[ Reply to This | # ]

There's something wrong here
Authored by: The Mad Hatter r on Thursday, April 07 2011 @ 10:39 AM EDT

To quote Marcellus from William Shakespeare's Hamlet, 'Something is rotten in
the state of Denmark.'

Let's see.

1) Novell apparently didn't file an objection to the sale
2) The SCO Group apparently spent the money held in trust for Novell
3) The U.S. Trustee has been missing in action
4) Judge Cahn has been, well, a pod person effectively
5) Judge Gross finally decides on a sale to the group he wouldn't sell to before
- why now?
6) Why not just convert to Chapter 7 and give Novell what was left?
7) Does anyone get the impression that Delaware more resembles Ferrengal?

Just some thoughts. Think I'll take some more pain killers and stumble back to
bed.


---
Wayne

http://madhatter.ca/

[ Reply to This | # ]

Unxis website is alive.
Authored by: Anonymous on Thursday, April 07 2011 @ 10:40 AM EDT
Not sure if this is real.

Website

Look at "Our People" - different people, same photo.

[ Reply to This | # ]

SCO is No More
Authored by: the_flatlander on Thursday, April 07 2011 @ 01:10 PM EDT
>> The SCO Group as we knew it is no more, I conclude, ladies and
gentlemen. It is become a wasteland, where occasional desultory winds move the
tumbleweeds aimlessly here and there down the dusty and nearly empty streets.
<<

Paints quite the picture, but, (and I don't mean to be argumentative), I think
you're describing a neighborhood far nicer than the one SCO is in. I mean, I'm
thinking more along the lines of a place with drifting clouds of sulphur fumes,
and open pools of boiling pitch. Tumbleweeds are *way* too upscale for SCO,
these days.

The_Flatlander

I'm so old I remember when the company was called Caldera, and that didn't seem
prophetic.

[ Reply to This | # ]

"Loans to Insiders"
Authored by: Anonymous on Thursday, April 07 2011 @ 01:33 PM EDT
The way I read it is that the amount is $0. The $748,863 falls under the
heading "Other Assets" which in subsequent pages is defined as the
value of foreign or other subsidiaries.

[ Reply to This | # ]

Groklaw © Copyright 2003-2013 Pamela Jones.
All trademarks and copyrights on this page are owned by their respective owners.
Comments are owned by the individual posters.

PJ's articles are licensed under a Creative Commons License. ( Details )