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New SCO Directors Granted Stock Options
Friday, July 01 2005 @ 06:25 AM EDT

SCO has been quiet as a tomb.

I haven't seen a word about the annual shareholder meeting or any announcement about the two new directors. I noticed the stock seemed to have dipped under the usual $4 level it seems to hover at a good deal of the time, so I was starting to wonder.

But there are now some SEC filings that show the new directors getting 45,000 shares each, non-qualified stock options (right to buy) at $3.93, exercisable on 6/28/06, Omar T. Leeman and J. Kent Millington. Under "Remarks", it says, "Grant to new director of non-qualified stock options to buy shares of Common Stock under the company's 2004 Omnibus Stock Incentive Plan," so we can assume they were voted in.

If you can't remember who they are, you can review the bios SCO filed in a Schedule 14A Information which listed the meeting and listed the two as candidates.

The old directors were not overlooked. The following each got 15,000: Darcy Mott, as well as Edward E. Iacobucci, and Duff Thompson and Daniel W. Campbell. Under remarks, it says "Grant to Director of non-qualified stock options to buy shares of common stock under the company's 2004 Omnibus Stock Incentive Plan for service in fiscal 2005."

Ralph J. Yarro got 15,000 too, but the "Explanation of Responses" line is left blank on his form. I don't see any grant to Darl McBride, who is a Director as well. But if you review the 14A filed with the SEC, you'll see his arrangements.

All of this is in harmony with what the filing said directors get:

Director Compensation

        The compensation and benefits for service as a member of the Board of Directors is determined by the Nominations Committee. Directors employed by us or one of our subsidiaries are not compensated for service on the Board or on any Committee of the Board. Our non-employee directors currently receive $25,000 for each year of service as a director plus an additional $5,000 per year for each committee of the Board on which such non-employee directors serve. Additionally, the chairpersons of each of the Compensation Committee and the Nominations Committee receive an additional $5,000 per year and the chairpersons of each of the Audit Committee and the Litigation Oversight Committee receive an additional $10,000 per year. In addition, Board members are reimbursed for expenses incurred in connection with attendance at Board and committee meetings. Non-employee directors also receive stock option awards under our stock option plans, which awards currently include an initial option to purchase 45,000 shares of common stock upon joining the Board as a director and thereafter each non-employee director who continues to serve on the Board automatically receives an annual grant of an option to acquire 15,000 shares upon his or her election at the annual meeting.

If you are interested in a chart of historical prices, to see how the price compares and the ups and downs of the stock, Yahoo makes it easy. Just plug in the dates that interest you and whether you want to see daily prices or weekly or whatever.

So, there are still some folks left on planet Earth who have faith in SCO, or something. Here's a 13G dated June 16 which lists Scoggin Capital Management, L.P., Scoggin International Fund, Ltd., organized and located in the Bahamas, Scoggin, LLC, Craig Effron, and Curtis Schenker, who now own enough SCO stock to have to file with the SEC. Here's the complete list from the filing:

Item 2(b). Address of Principal Business Office or, if None, Residence:

Each of the Reporting Persons, other than Scoggin International Fund, Ltd., has a business address at 660 Madison Avenue, New York, NY 10021.

Scoggin International Fund, Ltd. has a business address at c/o Vincent King, Swiss Financial Services, One Montague Place, 4th Floor; East Bay Street; Nassau, Bahamas.

Item 2(c). Citizenship or Place of Organization:

(i) Scoggin Capital Management, L.P. II -- Delaware

(ii) Scoggin International Fund, Ltd. -- Commonwealth of the Bahamas

(iii) Scoggin, LLC -- New York

(iv) Craig Effron -- USA

(v) Curtis Schenker -- USA

Mr. Effron and Schenker are listed, along with various Scoggin entities, on this document from a SEC filing regarding another company (Advanced Medical Optics), and in footnote 1 it explains who is who:

The general partner of Scoggin Capital Management, L.P. II is S&E Partners, L.P., a limited partnership organized under the laws of Delaware. Scoggin, Inc., a corporation organized under the laws of Delaware, is the sole general partner of S&E Partners, L.P. Craig Effron and Curtis Schenker are the stockholders of Scoggin, Inc.

That filing lists a Scoggin Worldwide Fund, Ltd. also, located in the Cayman Islands. This hedge fund database lists "SCOGGIN INTERNATIONAL FUND LTD." And here's [PDF] a company Scoggin invested in, one of the California energy companies involved in the 2000 California energy "crisis", Mirant Corporation, (see page 27, a list of the top 50 shareholders). Mirant ended up in bankruptcy court, filing a voluntary petition for Chapter 11 as part of a reorganization, after the Enron collapse. You can read all about it here. Mr. Leeman, as you'll recall, used to work for WorldCom, although the bio SCO filed with the SEC doesn't tell us that.

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