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SCO's Bankruptcy Lawyers, Pachulski Stang: We'd Like to Be Paid
Thursday, February 25 2010 @ 08:20 PM EST

Is there any way today could be any busier? Now, on top of the filings and rulings and the hearing today in the SCO v. Novell litigation, there were also some filings in SCO's bankruptcy in Delaware. Judge Gross did as SCO's trustee asked and reset the deadline for objections to the Yarro loan offer to February 26. Remember that ring around the rosie?

And one of SCO's bankruptcy lawyers, the firm of Pachulski Stang, filed its 8th bill, a quarterly covering July 1, 2009 through September 30, 2009, which hasn't yet been paid, it turns out, and it wants to get paid an interim allowance of $$55,049.31. Well, one of SCO's ex-lawyers. They're done in the bankruptcy now that the SCO trustee is on the job.

Shocker. Who'd ever expect SCO not to timely pay its bills, huh? I wonder if Pachulski Stang ever read the parable about the scorpion and the frog crossing the river together? Remember what happens when the scorpion makes it safely to the other side?

Here are the filings:

02/23/2010 - 1062 - Order Vacating Order Granting Motion of Chapter 11 Trustee to Shorten Notice and Response to Trustee's Motion for Order (I) Authorizing Debtors Estates to Obtain PostPetition Financing and to Grant Security Interests and Superiority Administrative Expense Status Pursuant to 11 U.S.C. 105, 363(c), 364(c), 364(e) AND 507(b); (II) Modifying the Automatic Stay Pursuant to 11 U.S.C. 362; and (III) Granting Other Relief( related document(s) 1051 , 1052 , 1053 , 1057 ) Order Signed on 2/23/2010. (SDJ) (Entered: 02/23/2010)

02/24/2010 - 1063 - Certificate of No Objection (No Order Required) Regarding Twenty-Seventh Monthly Application of Pachulski Stang Ziehl & Jones LLP, as Co-Counsel to the Debtors and Debtors in Possession, for the Period from November 1, 2009 through November 30, 2009 (related document(s) 1047 ) Filed by The SCO Group, Inc.. (Attachments: # 1 Certificate of Service and Service List) (Makowski, Kathleen) (Entered: 02/24/2010)

02/25/2010 - 1064 - Application for Compensation and Reimbursement of Expenses for the Period from July 1, 2009 Through September 30, 2009, Eighth Quarterly Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 3/17/2010. (Attachments: # 1 Notice # (2) Exhibit A # 3 Exhibit B # 4 Exhibit C # 5 Proposed Form of Order # 6 Certificate of Service re Fee App # 7 Certificate of Service re Notice Only) (O'Neill, James) (Entered: 02/25/2010)

This quarterly bill is for $46,474.50 for 118 hours, plus expenses of $8,574.81. That includes $2,605.10 for "Reproduction Expense", almost $700 for couriers, $108 and some pennies for DHL and Federal Express, and $146 for "Working Meals". This is a communicating bunch. That's actually because of the role they played, kind of coordinating all the legal teams.

And here's what they tell the court about the bills they filed in September and November, 2009 and January of 2010:

6. On September 25, 2009, PSZ&J filed its Twenty-Third Monthly Application of Pachulski Stang Ziehl & Jones LLP for Compensation and for Reimbursement of Expenses as Counsel to the Debtors and Debtors in Possession for the Period from July 1, 2009 through July 31, 2009 ("Twenty-Third Monthly Fee Application") requesting $35,004.00 in fees and $4,222.38 in expenses. PSZ&J has not received any payment of fees or expenses requested in the Twenty-Third Monthly Fee Application. A true and correct copy of the Twenty-Third Monthly Fee Application is attached hereto as Exhibit A.

Same for all the bills listed. They are not being paid. Maybe because SCO is SCO? Maybe because SCO really ought to be in Chapter 7, since it has no money? Wasn't it SCO's lawyers, though, who argued that everything but the litigation had to wait, that SCO's chance was finally here, to have its day in court in the litigation lottery? Now it's SCO's lawyers who must wait to be paid, like all the other hapless SCO creditors?

I surely would never recommend that you skip out on your lawyer, actually. Lawyers are more like this frog, with the ultimate goal being something like this, if they don't get paid. Lawyers like to get paid.


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