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Reference7 | 311 comments | Create New Account
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Reference7
Authored by: tiger99 on Tuesday, August 07 2012 @ 08:02 AM EDT
No. It is basically a case of Cahn going to jail for trading while insolvent (as would a normal company director) if he carries on in Chapter 11, when the company is insolvent. There is no money left, or it is known that what does remain will be gone very shortly to pay various bills. Liabilities exceed assets.

The requirements for Chapter 7 trustees seem to be rather different to those of Chapter 11 trustees, so his request to continue as trustee will not necessarily be approved. In any case, it would seem to be highly inappropriate, as his actions were directly responsible for bleeding SCO dry. If Judge Gross has the slightest degree of competence he should put SCO into Chapter 7 and appoint a fresh trustee as liquidator. But on past experience, he will give Cahn the job.

Somehow, I expect at least IBM to object....

[ Reply to This | Parent | # ]

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