Item 1.03 Bankruptcy or Receivership.
On September 14, 2007, The SCO Group, Inc. and its wholly owned
subsidiary, SCO Operations, Inc. (collectively, the “Debtors”), filed
voluntary petitions for relief under Chapter 11 of the United States
Bankruptcy Code in the Bankruptcy Court for the District of Delaware (the
“Bankruptcy Court”). The Debtors’ Chapter 11 cases are being jointly
administered under Case No. 07-11337(KG).As you know, Darl McBride testified at trial in
On July 27, 2009, the Bankruptcy Court held a hearing and took evidence
on cross-motions consisting of (a) the Debtor’s Motion for the Sale of
Property Outside the Ordinary Course of Business Free and Clear of Interest
and for Approval of Assumption and Assignment of Executor Contracts and
Unexpired Leases in Conjunction with Sale (the “Sale Motion”), and (b) the
Motions of Novell, IBM and the Office of the United States Trustee for
conversion of Debtors’ reorganization under Chapter 11 to a liquidation
proceeding under Chapter 7 of the Bankruptcy Code (collectively, the
On August 5, 2009, the Bankruptcy Court issued its Memorandum Opinion,
and denied all of the Conversion Motions and the Sale Motion. Instead, the
Bankruptcy Court opted to appoint a Chapter 11 Trustee, and entered an Order
directing the Office of the United States Trustee to do so. Pursuant to this
Order, the Office of the United States Trustee would select, and the
Bankruptcy Court would thereafter consider and approve, a Chapter 11 Trustee.
On August 25, 2009, the Bankruptcy Court issued its order approving the
appointment of Edward N. Cahn, Esquire, as Chapter 11 Trustee. Mr. Cahn is a
former chief U.S. district judge for the Eastern District of Pennsylvania.
He has extensive experience in the area of complex litigation, including
intellectual property. Mr. Cahn received an honorary doctorate from Lehigh
University in 2002. He was a Tresolini Lecturer in Law at Lehigh University.
Mr. Cahn holds degrees from Yale Law School and Lehigh University, where he
graduated magna cum laude.
Pursuant to the Bankruptcy Code, and subject to the supervision and
approval of the Bankruptcy Court, the Chapter 11 Trustee will have authority
over the Debtors’ assets and affairs and the future course of the Debtors’
litigation against Novell, IBM. et al.