The Notice of Agenda [PDF] is up, letting us know what will be handled on the 27th in bankruptcy court. All that is on the schedule is the motion [PDF] by Edward Cahn, SCO's Chapter 11 trustee, to approve SCO board members issuing some stock options to themselves after they forgot to timely do so, without first seeking approval or apparently even telling Mr. Cahn first. The story is they voted in August to issue them, but then they forgot to actually do so for some months.
I don't know why they bother with all the paperwork. In bankruptcy court in Delaware, the corporate debtor always wins and creditors get nothing, from what we've seen, or at least 99% of the time. They seem to like it that way.
[ Update: What'd I tell you? The judge has already signed the order. I have it for you.]
Approving this motion ... well, it sticks in my craw, for all the reasons I painstakingly outlined when SCO filed this beaut of a motion, mainly because of SCO's 2004 Change of Control Agreement, which I believe means this motion will drain money from the company, not pull it in, when it comes to the end of the almost impenetrable plan, but I'm not the one who gets to decide.
Here is the docket:
01/25/2010 - 1039 - Certificate of No Objection (related document(s) 1033 ) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Fatell, Bonnie) (Entered: 01/25/2010)
Judge Gross generally does whatever Mr. Cahn tells him to do, so I don't know whether to encourage you to attend or not. No one has filed any opposition, which doesn't mean no one will speak at the hearing. But it is possible it will be rubber stamped in 5 minutes and you will have traveled for hours for nothing. I'll leave it up to you. I naturally would like to chronicle every little twist in the river until we reach the ocean, so to speak, particularly if I suspect a diversion of the some of the water to a private pond, but I'm also aware it's asking a lot. If you do decide to go, check with the courthouse before you set out. The Status line in the filing says:
"The hearing on this matter will go forward if the Court believes a hearing is necessary." And if he's just going to rubber stamp, why would he want a hearing? One issue mentioned in the motion is whether or not Mr. Cahn taking over as Chapter 11 trustee is a change of control event. If so, it matters a lot, but no matter what happens on the 27th, that issue won't be decided then anyway, I wouldn't think.
01/25/2010 - 1040 - Notice of Agenda of Matters Scheduled for Hearing Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. Hearing scheduled for 1/27/2010 at 03:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Fatell, Bonnie) (Entered: 01/25/2010)
Updated docket, the order:
Obviously, this means there will be no hearing, so don't ask for a day off from work, whatever you do.
01/25/2010 - 1041 - Order (1) Confirming That Certain Stock Options Granted Post-Petition Were Awarded In The Ordinary Course Of The Debtors' Business (2) Authorizing the Trustee To Honor Certain Stock Options Exercised In Accordance With The Debtors' Books And Records (3) Confirming Notice As Given Is Sufficient And (4) Granting Related Relief. (related document(s) 1033 ) Order Signed on 1/25/2010. (GM) (Entered: 01/25/2010)
Update 2: Surprise, surprise. No hearing on the 27th. And Ocean Park submits another bill:
Most of Ocean Park's second bill, which covers the month of November, as you can see by the break down in Exhibit A, is for "Communication with potential lenders." $21,675.00. Next is "Analysis, Preparation and Execution of Restructuring Plan" at $12,729.00. A close third is "Analysis & Preparation of Budget & Reports". The grand total is $64,137.00.
01/26/2010 - 1042 - HEARING CANCELLED/RESCHEDULED. Amended Notice of Agenda of Matters Scheduled for Hearing. Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. Hearing scheduled for 1/27/2010 at 03:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Fatell, Bonnie) (Entered: 01/26/2010)
01/26/2010 - 1043 - Certificate of No Objection (related document(s) 986 , 996 ) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Fatell, Bonnie) (Entered: 01/26/2010)
01/26/2010 - 1044 - Certificate of No Objection (related document(s) 985 , 997 ) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Fatell, Bonnie) (Entered: 01/26/2010)
01/26/2010 - 1045 - Second Application for Compensation and Reimbursement of Expenses for the Period of November 1, 2009 Through November 30, 2009 Filed by Ocean Park Advisors, LLC. Objections due by 2/15/2010. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B # 4 Certificate of Service) (Fatell, Bonnie) (Entered: 01/26/2010)
Wait a second. Wasn't the story that the board issued itself its "forgotten" shares in December? What about this Ocean Park entry:
11/19/09 - Mark Fisler - Managing Director - 3.5 - 1,487.50 - Review of e-mails from debtor. Review of stock option grant analysis. - 4
That's November. Not December. So I wonder now if Ocean Park at least knew about all this before it happened? May it was Ocean Park that discovered it? Here's an entry a few days' later:
11/23/09 - Mark Fisler - Managing Director - 1.7 - $722.50 - Review of emails. Discussion with Debtor on option program history. Review and modification of NDA for execution.
NDA? A couple of days later, we see it's about an "NDA to potential lender". And all through November, you see items about potential lender. On November 23, I see Bruce Comer spent 0.3 hours on: "Correspondence with strategic partner." On the 30th Vinod Bhat, an associate, "Completed package for potential Lender." This is January. So, what happened? I guess we'll find out in the December bill, unless there is some announcement before then, if it was successful. If not, the next bill will show more such efforts with other potential lenders.