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To read comments to this article, go here
SCO wants more time to exclusively file a reorganization plan
Friday, May 09 2008 @ 06:47 PM EDT

SCO wants even more time to file a reorganization plan. It has filed a motion asking for 90 more days, until August 11, in its Second Motion by Debtor Under Section 1121(d) For Extension of Exclusivity Deadlines [PDF]. I expect they'll probably get it, unless there is a ruling from the Utah court on SCO v. Novell before the hearing on this motion in Bankruptcy Court in Delaware.

The initial period where SCO would be allowed to exclusively come up with a plan was to end on January 12, 2008. They asked for an extension on January 2nd, and they were granted an extension until May 11 to file a chapter 11 plan and until July 11 to get acceptances. SCO filed the beginnings of a plan, but the objections that rained down on it from all quarters inspired SCO to withdraw it and rework it. And here we are, with no ruling yet from the Utah court, which in fact makes it difficult to file a plan, since SCO has no idea yet how much it has to give to Novell.

Meanwhile, SCO argues that because Novell asked for only $20 million instead of $31, they have to negotiate with Stephen Norris folks from that new and "improved position". But note the footnote, where the figures morph into quite a different picture:

3. Novell filed a proof of claim (Claim No. 146) in the principal amount of $20,906,110 and prejudgment interest of at least $10,000,000. Novell's counsel remarked to the Utah Court that it now seeks a judgment of $19,979,561. See Excerpt of May 2, 2008 Transcript (Novell's closing argument), pp. 699-701, lines 20-11 (attached as Exhibit A hereto).

And with interest that would be what? SCO seems to be assuming or hinting that because interest wasn't mentioned in the closing argument that it has disappeared from the case. I don't think that is so. If you read the transcript of the trial, Novell's attorney says they are not going after $7 million, related to one section, Section 3, of the Microsoft agreement. They do want the rest, for a total of $9,750,000. They want all of the Sun license payments, which wasn't quite the $10 million owed. Sun actually paid SCO $9,143,809. Novell also wants all the money from all the other SCOsource licenses, which comes to $1,156,110. That's where the figure of $19 + million comes from. All Novell dropped is $7 million. The rest they want, and it just turned out to add up to $19,979,561, not $24 million, and I never heard Novell drop its demand for prejudgment interest. It's in their counterclaims. So much for SCO higher math. And so much for headlines claiming that Novell dropped its claims from $37 million down to a mere $19, eh? If SCO was telling people that, it doesn't match what they tell the bankruptcy court now.

They do mention they expect a ruling from the judge in Utah within 45-60 days of the last day of trial, so that's their best guess. For what it's worth.

Here are the filings:

468 - Filed & Entered: 05/08/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding Seventh Interim Application of Berger Singerman, P.A. for Compensation for Services and Reimbursement of Expenses, as Co-Counsel to the Debtors in Possession for the Period from March 1, 2008 through March 31, 2008 (related document(s)[447] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

469 - Filed & Entered: 05/08/2008
Certificate of No Objection
Docket Text: Certificate of No Objection (No Order Required) Regarding Fourth Monthly Fee Application of Mesirow Financial Consulting, LLC as Financial Advisors to the Debtors for Compensation and Reimbursement of Expenses for the Period from March 1, 2008 through March 31, 2008 (related document(s)[445] ) Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (Werkheiser, Rachel)

470 - Filed & Entered: 05/09/2008
Motion to Extend/Limit Exclusivity Period (B)
Docket Text: Second Motion to Extend Exclusivity Period for Filing a Chapter 11 Plan and Disclosure Statement and Solicit Votes Thereon Filed by The SCO Group, Inc.. Hearing scheduled for 6/17/2008 at 02:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. Objections due by 6/10/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Proposed Form of Order # (4) Certificate of Service and Service List) (O'Neill, James)


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