70 - Filed & Entered: 10/01/2007
Operating Report
Docket Text: Debtor-In-Possession Monthly Operating Report for Filing Period Initial Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service) (Werkheiser, Rachel)

It's signed by Bert Young, still CFO as of October 1. A quick scan shows page 2 is a 12-month cash flow projection, although the footnote indicates it's a work in progress. Progress might not be the perfect word, as the graph isn't pointing up, as I read it.

They have gotten some insurance, I see, including some for errors and omissions liability (copyright infringement going back to June of 2005) and some coverage for executives. The date is September 20, which is 6 days after they filed for bankruptcy. Did they get permission to do that? And why do they owe Maureen O'Gara's G2 another $10,000 in November?

I see the Order they've attached here says they are authorized to continue their prepetition business practices, but did they ever have insurance like that before? Well, it's a prudent investment, no doubt about that. I'm guessing the insurance company doesn't read Groklaw.

There are pages of foreign bank accounts, and then we find, on page 33, a list of retainers paid to various law firms and services:

• Berger Silverman - 425,000;
• Dorsey & Whitney - 100,000;
• EPIQ - 25,000;
• Mesirow Financial - 35,000; and
• Pachulsky Stang Ziehl and Jones - 75,000.

The lawyers always get their money, don't they? Novell on the other hand never sees a dime. And from Novell's point of view, SCO is using Novell's money to pay the lawyers. Of course, SCO sees visions of appeals and then buckets of moolah pouring down on it from heaven. It's all in your point of view.