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To read comments to this article, go here
Something Odd about Stephen Norris & Co Capital Partners - Updated 2Xs
Monday, February 25 2008 @ 11:27 PM EST

Now this is interesting enough to highlight. It's about the private equity firm looking to loan SCO money so they can sue Linux users again full speed ahead, Stephen Norris & Co Capital Partners, or SNCP. Timothy Prickett Morgan on ItJungle wrote a glowing piece about their connection to military contractors and Middle Eastern money and retired general Wesley Clark, and then something peculiar happened:
SNCP said--and continues to say--on its Web site that former presidential candidate and retired general Wesley Clark is on the company's investment committee, which was stated in the original version of this story that ran on February 21. Clark has contacted IT Jungle and says that he is not affiliated with SNCP and the equity firm is using his name without permission.

Since he posted this, Clark's name has disappeared from the SNCP website.

Update: I just noticed something else in that article:

Norris is not just the managing partner at the firm, but also its chairman. Pamela Newman, executive vice president of insurer AON Corporation, is on the company's investment committee. Norris was one of the co-founders of private equity giant The Carlyle Group, so you can bet that SNCP has a desire to invest in military contractors as much as other more traditional IT high tech companies.

Remember my theory?

Update 2: And here's something even more peculiar, in an article by Tom Harvey in the Salt Lake Tribune, Planned investor hopes to settle suits:

The head of the private-equity fund fund seeking to take over The SCO Group said Monday his investors are interested in building SCO's software business and not in what they can wring out of high-profile lawsuits with IBM and Novell.

Stephen Norris said he and his unnamed Middle Eastern partners hope their planned investment of up to $100 million in the bankrupt Utah company will lead to a settlement of pending suits and allow it to concentrate on building SCO's UNIX software business.

"We don't view ourselves as being in the litigation business," Norris said in a telephone interview. "We'd like to find a way to resolve the current situation in a manner that balances a lot of people's interests and allows us to build a business and not focus on paying enormous amounts of money to lawyers."...

Norris expressed surprise Monday at the vehemence of the comments on blogs about his proposed investment but said the company hoped a settlement would put the matter behind it.

The article goes on to say that they haven't finished doing their due diligence, and of course the deal depends on that.

But wait a second. Let's read the proposed MOU once again, to measure the truthiness of this statement about wanting to settle:

Also upon the effective date of the Proposed Plan of Reorganization, SCO will continue to pursue aggressively the Company's claims in the Novell/IBM Litigation and other pending litigation, including The SCO Group, Inc. v. Autozone, Inc., pending in the United States District Court for the District of Nevada, Case No. CV-S-04-0237-RCJ-LRL (the "Autozone Litigation")....

Purpose of Loan: The purpose of the loan is to provide funds for (i) working capital for SCO following its emergence from bankruptcy, (ii) to pay interest when due under the Debt Financing, and (iii) to support the prosecution of the Reorganized Debtor's Litigation Claims, including providing letters of credit or other financial arrangements adequate to support any required appellate bonds (in which event the Reorganized SCO shall pay the reasonable letter of credit fees and expenses), and to effect payment of any final award against the Reorganized Debtor). Advances to SCO under (i) above shall be subject to the achievement of milestones and maintenance of loan covenants to be established by SNCP and SCO in the Loan Documents....

The Debtor and SNCP acknowledge and agree that a purpose and intended effect of the Proposed Plan of Reorganization is to maximize the Debtor's litigation recovery under the Pending Litigation.

Is that not clear English? So either he is saying that he hopes to settle with a big settlement in SCO's favor, which is obviously delusional. Or it's not true that they want to settle. Or the MOU, which they signed, doesn't reflect their true heart's desire. Or things are shifting.

And the assertion that they are really interested in the software and the business. Isn't that exactly what the lawyer for York said about the folks York was fronting for? This can't be Son of York, by any chance, can it? With SNCP fronting for the same folks?


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