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Hearing Notes, SCO's Monthly Operating Report etc.
Thursday, April 03 2008 @ 06:20 PM EDT

More filings in the eternal SCO bankruptcy. First, the hearing notes, with the sign-in sheet. I see a new lawyer showed up, along with the regulars. The lawyer for the IPO Class Action litigation against SCO, John Crow was there. In addition, SCO filed its monthly operating report for the period through the end of February, and Tanner wants its monthly money. This is its sixth monthly bill, so they have certainly landed in a reliable field of clover. Most of their billing has to do with the reorganization plan SCO just scrapped, so it's pretty much busywork. But what do they care? Some of it may have some use with the next chapter of the SCO attempt to really, really file a really and truly good plan. Uh huh. SCO's lawyers say so:
"We don't have a new deal," Spector told U.S. Bankruptcy Judge Kevin Gross during a status conference on SCO's reorganization plan. "But when we get the deal that we think we are going to get, it's going to be better."

As you know, when SCO says something, their word is their bond, and you can take it to the bank. Or they can.

And there's one more transfer of claim, Randd Strategic Solutions to Argo Partners.

Here are the filings:

423 - Filed & Entered: 04/01/2008
Transfer/Assignment of Claim
Docket Text: Transfer/Assignment of Claim. Transfer Agreement 3001 (e) 1 Transferor: Randd Strategic Solutions To Argo Partners. Filed by Argo Partners. (Gold, Matthew)

424 Filed & Entered: 04/01/2008
Application for Compensation
Docket Text: Monthly Application for Compensation (Sixth) for Services and Reimbursement of Expenses as Accountants to the Debtors for the Period from March 4, 2008 through March 31, 2008 Filed by Tanner LC. Objections due by 4/21/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Werkheiser, Rachel)

425 - Filed & Entered: 04/02/2008
Minute Entry
Docket Text: Minutes of Hearing held on: 04/02/2008
Subject: Status Conference - Motion to approve Settlement Compensation Or Sale Compensation And Expense Reimbursement to Plan Sponsor; Disclosure Statement; Scheduling Confirmation;. (vCal Hearing ID (66944)). (related document(s) [421]) (SS, ) Additional attachment(s) added on 4/2/2008 ( SS [signin sheet] ).

426 - Filed & Entered: 04/02/2008
Operating Report
Docket Text: Debtor-In-Possession Monthly Operating Report for Filing Period as of 02/29/08 Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (O'Neill, James)

427 - Filed & Entered: 04/02/2008
Operating Report
Docket Text: Debtor-In-Possession Monthly Operating Report for Filing Period as of 02/29/08 - SCO Operations Inc. Filed by The SCO Group, Inc.. (Attachments: # (1) Certificate of Service and Service List) (O'Neill, James)


  


Hearing Notes, SCO's Monthly Operating Report etc. | 35 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
How come?
Authored by: JamesK on Thursday, April 03 2008 @ 06:32 PM EDT
This article has been up for about 12 minutes and no one's added the main
catagories?


---
This space intentionally left blank.

[ Reply to This | # ]

Corrections here
Authored by: Erwan on Thursday, April 03 2008 @ 06:57 PM EDT
If any. (Should be 1st thread ;-) )

---
Erwan

[ Reply to This | # ]

"But when we get the deal that we think we are going to get, it's going to be better."
Authored by: jdg on Thursday, April 03 2008 @ 07:01 PM EDT
They did not say the plan was going to be good, just that it was going to be
better -- not a particularly tough standard for this crew.

"But when we get the deal that we think we are going to get, it's going to
be better."

---
SCO is trying to appropriate the "commons"; don't let them [IANAL]

[ Reply to This | # ]

Off Topic here
Authored by: Tufty on Thursday, April 03 2008 @ 07:03 PM EDT
Keep it clean


---
There has to be a rabbit down this rabbit hole somewhere!
Now I want its hide.

[ Reply to This | # ]

    Newspick comments
    Authored by: Tufty on Thursday, April 03 2008 @ 07:05 PM EDT
    Please put title of article in the title box
    Ta


    ---
    There has to be a rabbit down this rabbit hole somewhere!
    Now I want its hide.

    [ Reply to This | # ]

    Operating Report Highlights
    Authored by: bezz on Thursday, April 03 2008 @ 09:06 PM EDT

    It looks like the Trustee's office has been on top of things since before the 341 Creditor's Meeting. Then, the issue of funding subsidiaries (like SCO China, in which SCO only has a 30% interest) was brought up. By February, funding subsidiaries has become #2 expense ($427,580), only beaten to the top by Professional Fees ($553,058). Administrative Selling came in #3 ($382,752).

    The payroll continues to look odd, as the Trustee has already mentioned. Now down to $319,028 (it was $649,580 in October), yet the payroll taxes $161,882 -- more than 50% of total payroll.

    As of the end of February, their cumulative net cash loss is $1,591,275, of which $1,061,845 occurred during the month. That was an expensive month.

    Cash. As of October 1, there was $6,438,789 cash on hand at the beginning of October, but it is now down to $4,323,170; all of that cash loss has come from unrestricted cash (down from $4 million September 14 to $2.4 million by the end of February) while restricted cash has remained almost constant (down $500 since the start at $1.9 million); you can't use restricted cash for operations as it is set aside for funding contractual obligations. Bottom line, SCO is down to $2.4 million as of the end of February.

    The cumulative expenses spell it out clearly as to where that money went. $2.1 million to subsidiaries and $1.1 million in professional fees. What also stands out is that while the cumulative payroll has been $2.3 million, payroll taxes amount to $1.1 million.

    Remember, this is the period during which the SNCP negotiations were under way. $550,000 is a lot of professional fees for a deal that had to be withdrawn. Expect more expenses to renegotiate a deal with SNCP. The professional fees for the York and SNCP deals (to date) have been wasted money. Funding foreign subsidiaries has been excessive compared to the costs of operating the core company, especially since they will go down with SCO's sinking boat (as admitted at the 341 meeting).

    The Trustee sees through the nonsense, and probably has from early on. If SCO dares to go into court with a "new and improved" SNCP that fails to meet its promise to be in the form of an asset purchase -- here's an APA, you get this, we get real money -- it could be lights out.

    As icing on the cake, excluding Professional fees, the company STILL loses money. Always has, but won't always will. Unless a PIPE Fairy steps in again.

    [ Reply to This | # ]

    Hearing Notes, SCO's Monthly Operating Report etc.
    Authored by: Anonymous on Friday, April 04 2008 @ 09:50 AM EDT
    April 29, the date set for the Utah hearing on the SUN-MS license revenue, is
    now only 25 days away.

    Now, I propose to view all the machinations that SCO has thrashed through
    recently as being controlled by one major fact: namely, that SCO knows that the
    hearing in Utah MUST be prevented from occurring.

    As we have noted here on Groklaw, that hearing will be disastrous for SCO, and
    should provide Novell's lawyers with an opportunity to pull the covers off the
    internal dealings between MS and SCO, in open court, with witnesses under oath,
    under cross-examination that will have no tolerance for weaseling.

    SCO has been trying, without success, to come up with a plan that will bootstrap
    some leverage for them to fend off Novell, with the hope that they can keep
    some, even small, bit of their powder dry to get a crack at IBM. David Boies is
    off at stage-right, full of his apparently limitless self-esteem, still
    believing that his dramatic entrance and his courtroom skills can pull a rabbit
    out of the hat.

    So -- the next 3 weeks should be interesting, especially the last 48 hours
    before April 29th.

    Pass the popcorn.

    LEXLAW



    [ Reply to This | # ]

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