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Bills in the SCO Bankruptcy Show Activity in the Swiss Arbitration
Friday, November 14 2008 @ 01:44 PM EST

More bills are in for SCO to pay in the bankruptcy. Tanner, Berger Singerman, and Pachulski Stang all have filed for mo' money. From the bills, we can discern through a glass darkly what's been going on. Here's what: the Swiss SUSE arbitration shows activity. You can find it on page 11 of Berger's Exhibit A, where we see a notation that SUSE has filed a "submission" to the tribunal. It references "SUSE arbitration statement to tribunal" also, but it could be the same thing. This happened on 10/1/08.

And what else? Research and strategizing on the plan went on in October, which to me points to work on a cramdown. You don't have to research and strategize over a wonderful plan where sufficient money is available for one and all from a fabulously rich prince on a camel. At least by the end of October, there was just researching and strategizing happening, from what we can see in the bills.

Here are the filings:

601 - Filed & Entered: 11/11/2008
Application for Compensation
Docket Text: Monthly Application for Compensation [Thirteenth] for Services and Reimbursement of Expenses, As Accountants to the Debtors for the Period from October 1, 2008 through October 31, 2008 Filed by Tanner LC. Objections due by 12/1/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Makowski, Kathleen)

602 - Filed & Entered: 11/13/2008
Application for Compensation
Docket Text: Monthly Application for Compensation [Fourteenth] for Services and Reimbursement of Expenses, As Co-Counsel to the Debtors in Possession for the Period from October 1, 2008 through October 31, 2008 Filed by Berger Singerman, P.A.. Objections due by 12/3/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Makowski, Kathleen)

603 - Filed & Entered: 11/13/2008
Application for Compensation
Docket Text: Monthly Application for Compensation [Twelfth] and Reimbursement of Expenses as Co-Counsel to the Debtors and Debtors in Possession for the Period from August 1, 2008 through August 31, 2008 Filed by Pachulski Stang Ziehl & Jones LLP. Objections due by 12/3/2008. (Attachments: # (1) Notice # (2) Exhibit A # (3) Certificate of Service and Service List) (Makowski, Kathleen)

This is Tanner's 13th bill, Berger's 14th (for October), and Pachulski's 12th (for August). Yes, that means we are nearing the end of the term of exclusivity for SCO to file a plan. The flow is down to a trickle for the lawyers, as the pile of money is almost gone. Pachulski is only billing for $6,100.50 plus expenses, which is their lowest bill yet. Tanner just keeps on keeping on, though. This is the bill for doing an audit of SCO's 2008 SEC filings that Tanner filed a motion for approval to do in another expansion of its duties. There will be a hearing on the motion on November 20, but the first quarterly work is done and the bill for $23,500 plus expenses is on the table. That's the quarterly amount they projected, for a total of $198,000 for the fiscal year.

Berger, which one would imagine would be busy as bees preparing a plan, bills for a measly $10,545, about half of it spent on claims administration and objection. That's regarding the omnibus objection to claims. I see on page 10 of their filing that we've only seen one of the three they've been preparing. Only $1,645.50, representing 6.70 hours, was spent on the plan in October. Not even that. The description of that category reads like this, on page 11 of the filing: "Plan and Disclosure Statement: The Firm worked with the Debtors on, among other things, plan and confirmation issues." You can see on Exhibit A, page 10 that there is a fair measure of research using up the time spent, researching "confirmation issues". I take that to indicate they don't feel too confident there will be no objections. I see they talked to Darl by phone about "terms of new or amended plan" and immediately thereafter they hit the law books again. Then, on the next page, you see this:

10/23/2008 - IMM - STRATEGIZE REGARDING POTENTIAL PLAN TERMS AND ANALYZE LAW IN SUPPORT OF SAME - 0.60
Uh oh. I'd imagine that means a cramdown is on the way. No camels showed up, I am thinking, at least not by October 23rd.

And a little time, I see on page 11, was spent on litigation counseling regarding the Swiss arbitration.

There seems to have been an unauthorized post-petition transfer, some kind of payment to Hyperion and you can see they spent a little time trying to get that money back, on page 6 of Berger's Exhibit A. On page 7, we see not only does Tanner get to put in bills for the SEC work, but Berger bills for talking with them about it and doing to motion for them. What I've learned about bankruptcies is that they are good to the very last drop for the folks who work for the debtor.


  


Bills in the SCO Bankruptcy Show Activity in the Swiss Arbitration | 92 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections Here, Please
Authored by: TheBlueSkyRanger on Friday, November 14 2008 @ 01:49 PM EST
Dobre utka,
The Blue Sky Ranger

[ Reply to This | # ]

Newspick Discussion Here, Please
Authored by: TheBlueSkyRanger on Friday, November 14 2008 @ 01:50 PM EST
Dobre utka,
The Blue Sky Ranger

[ Reply to This | # ]

Off Topic Here, Please
Authored by: TheBlueSkyRanger on Friday, November 14 2008 @ 01:51 PM EST
Dobre utka,
The Blue Sky Ranger

[ Reply to This | # ]

OT - SCOGBK 586 ...
Authored by: Anonymous on Friday, November 14 2008 @ 02:13 PM EST
SCOGBK 585 quotes.

Objection Deadline: November 13, 2008 at 4:00 p.m. (prevailing Eastern time)
Hearing: November 20, 2008 at 9:30 a.m. (prevailing Eastern time)
NOVELL'S MOTION FOR ENTRY OF ORDER CONFIRMING CONSTRUCTIVE TRUST AND DIRECTING THE DEBTORS TO PAY FUNDS TO NOVELL

I've not heard about a response from SCOG. I'm wondering if I might have missed some development here. If there hasnt been a response, what on earth does this mean?

[ Reply to This | # ]

Bills in the SCO Bankruptcy Show Activity in the Swiss Arbitration
Authored by: mikeprotts on Friday, November 14 2008 @ 04:52 PM EST
"What I've learned about bankruptcies is that they are good to the very
last drop for the folks who work for the debtor"

The administrators key skill seems to be to keep the process running until just
before the funds to pay their bill run out, you don't want to go just over
because then you don't get paid.

One company went bust owing me about £50, and eventually the administrators
wrote to me (over 5 years later) asking if I would actually cash the £0.57p
check. I suspect their charges for issuing the letter cost more than that!

Cheers
Mike

[ Reply to This | # ]

Oh no, a cramdown is comming...
Authored by: hAckz0r on Friday, November 14 2008 @ 05:12 PM EST
Oh, how depressing. I just went to look up the legal terminology cramdown and found this statement within that definition context:
There is no penalty for a debtor who doesn’t live up to the terms of the bankruptcy plan.

Of course with reading that, how could Daryl ever pass up on that one! If a cramdown is not on the way I would be very surprised to say the least.

---
DRM - As a "solution", it solves the wrong problem; As a "technology" its only 'logically' infeasible.

[ Reply to This | # ]
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