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More Lawyer/Accountant Bills for SCO - Updated with the Doomsday Clock
Tuesday, January 15 2008 @ 03:35 AM EST

More bills from lawyers and accountants in the SCO bankruptcy are on the docket. Is anyone keeping a running tab? Wouldn't that be a good idea now that Novell has mentioned SCO has spent over a million dollars already in the bankruptcy on lawyers and financial advisors? If so, send it to me, and we'll have a kind of SCO tally. You know, like a Doomsday Clock.

Here are the filings:
307 - Filed & Entered: 01/14/2008
Application for Compensation
Docket Text: Monthly Application for Compensation (Third) and Reimbursement of Expenses, as Co-Counsel to the Debtors and Debtors in Possession, for the Period from November 1, 2007 through November 30, 2007 Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 2/4/2008. (Attachments: # (1) Notice # (2) Exhibit A# (3) Certificate of Service and Service List) (Werkheiser, Rachel)

308 - Filed & Entered: 01/14/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding First Interim Application of Tanner LC for Compensation for Services and Reimbursement of Expenses as Accountants to the Debtors for the Period from October 5, 2007 through November 5, 2007 (related document(s)[285] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

309 - Filed & Entered: 01/14/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding Second Interim Application of Tanner LC for Compensation for Services and Reimbursement of Expenses as Accountants to the Debtors for the Period from November 6, 2007 through December 5, 2007 (related document(s)[286] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

310 - Filed & Entered: 01/14/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service of Notice of Filing of Fee Application and the Second Interim Application of Dorsey & Whitney LLP, Special Counsel to the Debtors and Debtors-In-Possession, for Compensation and Reimbursement of Expenses for the Period November 1, 2007 Through November 30, 2007 (related document(s)[305] ) Filed by Dorsey & Whitney LLP. (Schnabel, Eric)

Update: OK. Here's our first version of the SCO Doomsday Clock, showing how much SCO has been billed since the start of the bankruptcy in mid-September. Mesirow reduced what it would take immediately, but not what it is ultimately billing, so we left the original figure intact. If you have corrections or additions, please let me know, but this is accurate, we think:

Docket #FirmFeesExpensesTotal
163Berger Singerman$65,331.00$2,526.40$67,857.40
224Berger Singerman$175,516.00$5,177.33$180,693.33
238Dorsey & Whitney$57,585.75$6,139.29$63,725.04
287Berger Singerman$296,323.25$13,072.33$309,395.58
305Dorsey & Whitney$26,456.50$527.93$26,984.43
___ Total$1,330,996.80$99,759.52$1,430,756.32

Boies Schiller have been paid millions since day one of the SCO saga up to the bankruptcy and are also a creditor, but this is a chart of the bankruptcy figures only.

I'm thinking to make it a real Doomsday Clock we should add the amount that SCO started with in the way of assets, cash assets, and then show it going down.

Update 2: Here's a fascinating look at the state of Delaware, the capital of the bankruptcy universe in the US, where bankruptcies are a booming business:

For the year, Chapter 11 activity rose 23 percent to 220 filings from 179 filings in 2006, according to data provided by the court. ...Bird said the filing activity has continued into the first two weeks of 2008 and the court is bracing for an active year.

"We are very busy," said Laura Davis Jones, managing partner of Pachulski Stang Ziehl & Jones in Wilmington, a national firm specializing in bankruptcy.

For a state as small as Delaware, the return of the bankruptcy business has enormous economic consequences. It has been estimated that cases in Bankruptcy Court generate more than $50 million annually to the local economy, which includes money spent on hotels, caterers, document services and fees to Wilmington lawyers.

The bankruptcy bar in Delaware includes about 200 lawyers. Big cases can generate huge fees to lawyers and consultants. Legal scholars said fees to firms can range from 0.5 percent to 20 percent of the company's assets, depending on the size of the company.

But what is really interesting is that the article explains that most companies choose Delaware because it is so fast:

The court in Delaware created the quickie bankruptcy proceeding known as the "pre-packaged" case. A company using a pre-packaged bankruptcy could have its reorganization plans confirmed at a median rate of 57 days from 1999 to 2001, according to LoPucki. Procedures developed in the Delaware courts streamlined and standardized rules for the most complex cases, bankruptcy experts said.

As a result, by 1996, the state's share of bankruptcy filings by large public companies had risen to 87 percent of large public company filings nationwide, according to LoPucki.

After that, it goes on, New York took over the lead for a while, because Delaware became a victim of its own success, and so many cases went there, they didn't have enough judges, so it slowed down and with visiting judges helping out, it all got chaotic. Then they put more judges on the bench, and now Delaware ranks number one again.

So. 57 days. Normal is to try to go fast through to reorganization. Here we are at 3 1/2 months in the SCO Chapter 11, and nothing. Well. Lotsa fees. And we have not yet seen the bills from Jackson Hole Advisors, or the UK firm, Elkington & Fife handling the UK trademark issue, or the firm advising SCO on employee claims [PDF], Landman Corsi, or the PR firm ramped up to handle the bankruptcy, or the Indian law firm, Thakker & Thakker, or the law firm, Madson & Austin, that says it advises SCO on intellectual property matters, or the Korean firm, Kim & Cho, handling some kind of trademark thing. All of these professionals are working away on SCO's behalf, presumably, since they all filed applications to do so. Wait, I almost forgot the firm of Donohue & Associates, who advised SCO about the Nasdaq matter. And then there is the money for the German litigation. But even without their bills, the figure is already nearly a million and a half since September 14.

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