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Two More Objections -- from the US Trustee's Office
Friday, March 28 2008 @ 01:17 AM EDT

Two more objections have been filed in Delaware Bankruptcy Court, this time by the US Trustee's Office, one an objection [PDF] to SCO's Disclosure Statement and another [PDF] to the plan to give SNCP oodles and boodles of money for nothing, or as the objection puts it to pay "bonus compensation" to SNCP "for providing a financing commitment of questionable value at an above-market cost." A "windfall" in short. Forsooth, methinks the worm has turned and these SCO motions are toast, m'lords.

The basis for the objection to the disclosure statement is inadequate information. There's no description of a business plan or descriptions of financial projections, the US Trustee points out, or any indication of the effect on SCO's future of an ultimately adverse ruling in the litigations. Then there's this:
[H]ow much of the Debtors' business plan is predicated on the Debtors' use of property which Novell claims to be its own?

Indeed. What a good question.

It has registered too that there is inadequate info about Stephen Norris Capital Partners. Do they actually have sufficient money "to provide -- or procure -- the exit funding commitment referenced in the disclosure statement", the objection asks? And here is another big question, one IBM asked also in its objection:

Who are the proposed directors/officers of the reorganized Debtors, "their affiliations and the compensation to be paid to such persons"?

Inquiring minds want to know. The US Trustee's Office and IBM are asking the one question that matters most: who's behind this really? They intend to smoke that information out, I gather. That should be fascinating. Then the US Trustee references IBM's objection, says it agrees with IBM, and asks the court to deny SCO's motion.

Folks in the media who persist in asserting that SCO has a chance to win in the end or got a raw deal might like to take notice of this section:

SCO reaffirms its belief that "it has an excellent chance to prevail in the Novell/IBM Litigation, including potential for an award of potential damages in its favor"... yet seeks to award SNCP one-half of the net proceeds if any of the Litigation Claims are resolved prior to the Effective Date, regardless of whether the Plan is confirmed. ... Given that the Debtors take the position that the Litigation Claims are valuable, they do not even attempt to argue that awarding one-half of the value of those claims to SNCP pursuant to a pre-Effective Date settlement represents the "actual, necessary cost[s]" of preserving the Debtors' estates....

I believe that is legalese for "The US Trustee's Office didn't just fall off a turnip truck." Of course, some SCO-supportive blogger may still write about how SCO is a victim of mob justice... Hahahaha. Maybe not this time. The US Trustee's Office works for the US Department of Justice.

Here are all the filings:

416 - Filed & Entered: 03/27/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service of Kimberly A. Beck re: Docket Nos. [410], [411], [412] and [413 (related document(s)[410], [413], [411], [412] ) Filed by Novell, Inc.. (Greecher, Sean)

417 - Filed & Entered: 03/27/2008
Affidavit/Declaration of Service
Docket Text: Affidavit/Declaration of Service re: Transfer/Assignment of Claim. Transfer Agreement 3001 (e) 1 Transferor: Shenyang Neusoft Co. Ltd To Riverside Claims LLC. (related document(s)[406] ) Filed by The SCO Group, Inc.. (O'Neill, James)

418 - Filed & Entered: 03/27/2008
Docket Text: Objection to Debtors' Motion To Approve Settlement Compensation Or Sale Compensation And Expense Reimbursement to Plan Sponsor (related document(s)[346] ) Filed by United States Trustee (Attachments: # (1) Certificate of Service) (McMahon Jr., Joseph)

419 - Filed & Entered: 03/27/2008
Docket Text: Objection to (a) the Debtors' Proposed Disclosure Statement and (b) the Debtors' Motion for an Order (i) Scheduling the Confirmation Hearing; (ii) Approving Form and Contents of Solicitation Package; (iii) Approving Form and Notice of the Confirmation Hearing; (iv) Establishing Record Date and Approving Procedures for Distribution of Solicitation Packages; (v) Approving Forms of Ballot; (vi) Establishing Voting Deadline for Receipt of Ballots; (vii) Approving Procedures for Vote Tabulations; (viii) Establishing Deadline and Procedures for Filing Objections to Confirmation of Plan; and (ix) Granting Related Relief (related document(s)[369], [394] ) Filed by United States Trustee (Attachments: # (1) Certificate of Service) (McMahon Jr., Joseph)

This is getting to be fun again, don't you find?

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