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SCO Asks Bankruptcy Court to Set April 10 as "Bar Date" For Proofs of Claims
Saturday, February 09 2008 @ 09:21 PM EST

More filings in the SCO bankruptcy. SCO would like to set a deadline of April 10 for all claims to be filed for prepetition claims, so it's filed a motion asking for that relief. There will be a hearing on this motion on March 7, 2008 at 2:00 PM. And two of SCO's lawyers filed documents regarding their bills, looking to be paid. Also, in the SCO v. Novell case in Utah, the parties have stipulated that Novell has until February 19 to file its response to SCO's opposition to Novell's Motion for Summary Judgment on its 4th Claim for Relief.

You'll see SCO talking about a bar date. No. Not that kind of date. It means a legal deadline after which you can't file any more:

In every business bankruptcy case where assets are available for distribution there is a deadline for filing proofs of claim. In legal parlance this is referred to as the “bar date”. ...

In Chapter 11, if the bankrupt has not listed the creditors claim, listed it incorrectly, listed it as disputed or contingent then the creditor must file a proof of claim if they want to participate in any distribution of assets from the bankruptcy.... Failure to file the proof of claim by the bar date can result in disallowance of the claim.

The Code permits the debtor and “any party of interest” to object to the proof of claims filed and the Bankruptcy Court may allow or disallow claims regardless of authenticity. This means that the Court may allow contingent claims. If objected to, the Court determines the amount of the claim.

It's up to the Court to set a bar date in Ch. 11. And it's a serious cutoff. You noticed it said if you miss the deadline, it "can result in disallowance." Sounds a bit squishy. But to give you an idea of how it plays out in real life, you'll find two contrasting cases in this recent Morris James' Delaware Business Bankruptcy Report, one where creditors lost out by missing the deadline and one where a failure was excused. Here's the section of the US Bankruptcy Code about claims, and if you scroll down to section 507, you'll find "Priorities".

Here are the bankruptcy filings:

334 - Filed & Entered: 02/06/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding Third Monthly Application of Pachulski Stang Ziehl & Jones LLP, as Co-Counsel to the Debtors and Debtors in Possession, for the Period from November 1, 2007 through November 30, 2007 (related document(s)[307] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

335 - Filed & Entered: 02/07/2008
Motion to Approve (B)
Docket Text: Motion to Approve Debtors' Motion for Order Establishing a Bar Date for Filing Proofs of Claim and Approving the Form and Manner of Notice Thereof Filed by The SCO Group, Inc.. Hearing scheduled for 3/7/2008 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. Objections due by 2/29/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Exhibit B # (4) Exhibit C # (5) Proposed Form of Order # (6) Certificate of Service and Service List) (O'Neill, James)

336 - Filed & Entered: 02/07/2008
Application for Compensation
Docket Text: Quarterly Application for Compensation [First] and Reimbursement of Expenses as Co-Counsel to the Debtors in Possession for the Period from September 14, 2007 through December 31, 2007 Filed by Berger Singerman, P.A.. Hearing scheduled for 3/7/2008 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. Objections due by 2/27/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Exhibit B # (4) Exhibit C # (5) Exhibit D # (6) Certificate of Service and Service List for Fee App # (7) Certificate of Service and Service List for Notice only) (Werkheiser, Rachel)

It all seems a bit surreal to me, since a bar date is set in cases where there are assets available for distribution to creditors, and we won't know if there are or are not any such assets until after the SCO v. Novell trial is over. Novell could conceivably get it all. Not that it looks like it'll be much. But York seems to want the Unix assets, after all. So even if there is no cash left for Novell, there will still be those assets, equipment, etc. Oh. And ... um... SCO's intellectual property. Snark. Speaking of which, here are the filings in SCO v. Novell:

492 - Filed & Entered: 02/07/2008
Motion for Extension of Time to File Response/Reply
Docket Text: Stipulated MOTION for Extension of Time to File Response/Reply as to [478] MOTION for Summary Judgment on Novell's Fourth Claim for Relief filed by Defendant Novell, Inc.. (Attachments: # (1) Text of Proposed Order) Motions referred to Brooke C. Wells.(Sneddon, Heather)

Update: Note correction of bar date: April 10, not 11.


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