SCO wants to have another auction. The first one was a fizzle, or so they seem to be indicating, even though at the hearing back in August on SCO's desire to hold the first auction, they represented they had bidders lined up already. But no sale.
This isn't just another way to delay until after the January 20th oral argument in SCO's appeal of its loss to Novell, is it? Or avoid the inevitable discussion about defaulting on the Yarro loan, handing over the keys, and turning out the lights once and for all on SCO as we knew it? And what should us normal folks hope for in such a scenario as this?
That we knew The Rest of the Story of what's going on behind the scenes, methinks.
Here is the filing:
In any case, they will try again to set up an auction, with a new minimum deposit to qualify to bid:
01/06/2011 - 1212 - Notice of Hearing // Notice of Modified Bidding Procedures in Connection With Auction and Sale of Substantially All of the Debtors' Software Business Assets Consistent With Form Asset Purchase Agreement and Free and Clear of Liens, Claims and Encumbrances Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. Hearing scheduled for 2/16/2011 at 04:00 PM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Attachments: # 1 Certificate of Service) (Fatell, Bonnie) (Entered: 01/06/2011)
A potential Qualified Bidder of any Acquired Assets must timely submit a Qualified Bid for the Acquired Assets by January 14, 2011 that complies with Paragraph 7 of the Bidding Procedures Order in all respects except that the Deposit shall be in the amount of $100,000. It was "an amount equal to 10% of the total purchase price set forth in the Modified APA" [see Sale Procedures Proposed Order, page 7] if you wanted to bid for all of SCO's business assets, more or less (not SCO Japan or Canada), except SCO's litigation rights regarding Novell, SUSE, IBM, Red Hat, and so forth.
Litigation rights. Funny way to phrase it, considering two judges and one jury have ruled it never had the right to sue anybody over copyrights it never owned.
Wait. What is the anticipated sale price that $100,000 is now enough? I mean, some of us cynics have been waiting and watching to see how in the world SCO plans to pay back Ralph Yarro and his money buddies, who loaned SCO $2 million. They get the assets on a default, don't they? They get 50% of whatever SCO gets from this asset sale in any case, no? So if the price is less than enough to pay the loan back, then what happens?
The new deadline is January 14 to get your bid in. The auction will be on January 19th at the law offices of Blank Rome. Heh heh. And they'll announce the highest bidder to all "contract parties" on January 21 and the deadline to object -- "solely on the grounds that they have not received adequate assurance of future performance with respect to their Assigned Contract" -- will be February 7 at 4 PM Delaware Time. All objections to the "Transaction" must be filed with the Bankruptcy Court and "served on the Notice Parties" by the same date and time. Then there will be a hearing on February 16 at 4 PM.
Sounds like they have a plan. Here's some information on the folks hovering around SCO in the past, who will all have this wonderful business opportunity once again.