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To read comments to this article, go here
SCO Files MORs for March
Friday, May 07 2010 @ 03:07 PM EDT

SCO has filed its monthly operating reports for March. This is the month they did the deal with Ralph Yarro, so we find out what they did first with that loan money. Pay themselves, of course, and their lawyers. And one of their experts.

Here they are:

05/04/2010 - 1118 - Debtor-In-Possession Monthly Operating Report for Filing Period as of March 31, 2010 (The SCO Group, Inc.; 07-11337) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Attachments: # 1 Certificate of Service) (Fatell, Bonnie) (Entered: 05/04/2010)

05/04/2010 - 1119 - Debtor-In-Possession Monthly Operating Report for Filing Period as of March 31, 2010 (SCO Operations, Inc.; 07-11338) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Attachments: # 1 Certificate of Service) (Fatell, Bonnie) (Entered: 05/04/2010)

The second document, on page 13, shows the payments in March:
  • Blank Rome, Cahn's firm, got paid ($335,296)

  • Mesirow (a mere $362)

  • Ocean Park ($261,645)

  • Pachulski Stang ($45,029)

  • Dorsey & Whitney ($10,191)

  • Tanner ($3,301 and $548)

  • Goodwin Proctor ($2,428)

  • Cursed Network ($1,725)

  • G. Gervaise Davis ($5,000)

  • Novell and the other creditors (not one red cent, as usual)

I rest my case. There is an imbalance in the bankruptcy universe, in terms of what us non-bankruptcy experts see as fair.

Davis is the SCO expert whose testimony was so whittled down by pretrial motions, he never actually testified, IIRC. Here's Novell's memorandum of law [PDF] outlining the issues it had with his proposed testimony. But he was available and prepared his declaration and his report, so he gets paid by SCO, despite being on the losing team, while Novell, who won at the jury trial, gets absolutely nothing. That's the part that seems so skewed to those of us not used to bankruptcy courts.


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