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Hearing Set For SCO's Motion to Partly Reopen SCO v. IBM ~ pj |
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Wednesday, November 30 2011 @ 08:20 PM EST
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Sometimes when this old earth is spinning around and around, just for a moment it stops at just the right place.
And so it is that Judge Clark Waddoups has set a hearing for oral argument on SCO's motion to restart parts of SCO v. IBM, a motion IBM opposes. Guess when he scheduled it for?
April! Yes, friends, April 18th -- 5 1/2 months from now. Do you think SCO can last that long? Let's look at the latest financials.
First, here's the notice about the hearing:
11/28/2011 - 1101 - NOTICE OF HEARING ON MOTION re: 1095 MOTION to
Reopen Case : (Notice generated by jwt) Motion Hearing set for 4/18/2012
03:30 PM in Room 102 before Judge Clark Waddoups. (jwt) (Entered:
11/28/2011)
Here are the latest financials from TSG, formerly known as The SCO Group, along with the most recent bills from Ocean Park, still drinking from the trough, although at a reduced rate -- the bill for October is only for a little over $6,000, compared with September's for $21,558.50:
11/10/2011 - 1366 - Certificate of No Objection regarding Monthly
Application for Compensation of Ocean Park Advisors, LLC (Twenty-Second)
for the period July 1, 2011 to July 31, 2011 [No Order Required]
(related document(s) 1333 ) Filed by Ocean Park Advisors, LLC. (Tarr,
Stanley) (Entered: 11/10/2011)
11/10/2011 - 1367 - Monthly
Application for Compensation of Ocean Park Advisors, LLC, Financial
Advisor to the Chapter 11 Trustee of the TSG Group, Inc., et al., for
the period September 1, 2011 to September 30, 2011 Filed by Ocean Park
Advisors, LLC. Objections due by 11/30/2011. (Attachments: # 1 Notice # 2 Exhibit A # 3
Exhibit B #
4 Certificate of
Service) (Tarr, Stanley) (Entered: 11/10/2011)
11/10/2011 - 1368 - Notice of Withdrawal of [DUPLICATE FILING]
Certificate of No Objection regarding Monthly Application for
Compensation of Ocean Park Advisors, LLC (Twenty-Second) for the period
July 1, 2011 to July 31, 2011 (related document(s) 1366 ) Filed by Ocean
Park Advisors, LLC. (Tarr, Stanley) (Entered: 11/10/2011)
11/10/2011 - 1369 - Certificate of No Objection regarding Monthly
Application for Compensation of Ocean Park Advisors, LLC (Twenty-Third)
for the period August 1, 2011 to August 31, 2011 [No Order Required]
(related document(s) 1344 ) Filed by Ocean Park Advisors, LLC. (Tarr,
Stanley) (Entered: 11/10/2011)
11/21/2011 - 1370 - HEARING CANCELLED/RESCHEDULED. Notice of Agenda of Matters Scheduled for Hearing. Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. Hearing scheduled for 11/23/2011 at 10:00 AM at US Bankruptcy Court, 824 Market St., 6th Fl., Courtroom #3, Wilmington, Delaware. (Attachments: 1 Certificate of Service) (Tarr, Stanley) (Entered: 11/21/2011)
11/28/2011 - 1371 - Monthly
Application for Compensation of Ocean Park Advisors, LLC (Twenty-Fifth)
for the period October 1, 2011 to October 31, 2011 Filed by Ocean Park
Advisors, LLC. Objections due by 12/19/2011. (Attachments: # 1 Notice # 2 Exhibit A # 3
Exhibit B #
4 Certificate of
Service) (Tarr, Stanley) (Entered: 11/28/2011)
11/29/2011 - 1372 -
Debtor-In-Possession Monthly Operating Report for Filing Period As of 10/31/11 (TSG Group, Inc. (f/k/a The SCO Group, Inc.), et al.; 07-11337) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley)
11/29/2011 - 1373 -
Debtor-In-Possession Monthly Operating Report for Filing Period As of 10/31/11 (TSG Operations, Inc. (f/k/a SCO Operations, Inc.); 07-11338) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley)
Note this is from PACER, but in actuality, 1372 is SCO Operations, and 1373 is SCO Group, so they got them mixed up in their filing. However, this is how it appears on PACER, so we're leaving it that way and just letting you know.
The hearing that was set for November 23rd was cancelled, as you see, because there were no matters to handle at a hearing. No one is objecting to anything. Bills get filed. No one objects. Folks get retained to do auditing and accounting tasks, and no one objects. So if anything interesting is happening, for sure it's not happening in public. So to our eyes, it looks like they are sleepwalking.
The Trustee was given permission to enter into a settlement agreement with the disgruntled lenders, Yarro and the boys, docket 1326 [PDF], and to effectuate it in whatever ways seemed good to them, docket Exhibit B [PDF]. This he did, and the court approved it. In the agreement [PDF], the lenders said they wouldn't object to the trustee paying professionals their fees, but they retain first dibs on any litigation proceeds. Actually, they have a lien on it, although they agree that they won't object to any professional fees still outstanding being paid. But the main term agreed upon, from my perspective, was that the trustee could pursue the litigation any way he wanted without their oversight or control, and that included dropping it if he saw fit. So, this latest motion to partly reopen the IBM case would appear to be solely his idea and the responsibility for it rests firmly on his shoulders. So how much money does SCO, I mean TSG, have? According to Dale Easton, whoever that is, who signed the October MORs as Controller, not much. At the beginning of October, SCO Operations had $370,285. At the end, it had $285,584. It took in $32,856; it paid UnXis $87,948 in "Settlement payments", whatever that is. Wait. Payments to UnXis. I thought UnXis was the buyer, not the seller.
Kidding. All the money goes away from headquarters. That's been the whole flow for some time.
SCO Operations is out $5,628,862 since the bankruptcy was filed. [Update: And no wonder. I just noticed on page 15 of Exhibit B, SCO Operations, under the header Amount Paid, totals $7,035,000 in professional fees paid since the bankruptcy began. Plus $492,956 in expenses. And that's not all the bills even. On page 17, we see 15,030 in professional fees, nonbankruptcy, and $19,763 in fees related to the "reorganization". And it lists (4,419) under Gain (Loss) of Sale of Equipment. On page 19, it lists $5,972,193 as prepetition liabilities; and $9,568,906 for "total liabilities".] It lists $19,932 in "AR Collections on Unxis Invoices - Due to Unxis" in October (that's better than what I first read it as, payment of stock options, but a reader points out that it's one line above). And the "reorganization" losses, attributed to SCO Group instead, totaled $700,276. And still they linger in bankruptcy with no reorganization to shake a stick at to date, still hitching their wagon to the fading star of "litigation proceeds" from IBM.
Ocean Park billed for nine matters in September, "Post-close Transition Implementation" being the biggest time sink. That's things like closing down bank accounts and handling 401K issues. "Analysis & Preparation of Financial models" was the next biggest. Financial models. Are they kidding? SCO is for sure not a financial model in my book. Then there was "Analysis and Preparation of Court Filings", and the rest are things like preparing for and participating in phone calls and meetings with management and with the Ch. 11 trustee and lawyers. To give you an idea of how they spent their time, Ocean Park spent 5.5 hours on "Preparation of Fee/Expense Applications" and only 1.1 hour on "Planning, Supervision and Review" of the company that month.
In October, Ocean Park spent a total of 26.8 hours on TSG, 7.1 on "Post-close Transition Implementation", 6.7 on "Analysis & Preparation of Financial models" (more financial models), 3.5 on "Analysis & Preparation of Court filings", and almost as much time, 3.0 hours, on "Preparation of Fee/Expense Applications". Wait. There were no court hearings in September or October in the bankruptcy. So what are these court filings, I asked myself. I josh. No one cares, least of all bankruptcy court. But if you look at the details, it's the MORs. Ocean Park does them, according to the itemized bills. Thus, they not only bill SCO for "helping" them model their financials, whatever that means; they also get paid for carefully chronicling each month the precise flow of lifeblood they and others suck from the corpse that used to be SCO; and then they bill for preparing the bills. And who is there to block them? The lenders can't. The court surely has no history of being awake at the wheel. Rather, like the dormouse at the Mad Hatter's tea party, who awoke only to say something brief and then fall asleep in the tea again, the court schedules a hearing and then cancels it. Then it does it again. But now a judge in the Utah has set a hearing for April, and it will actually come to pass. I doubt SCO thought the hearing would be set for so far into the future. So what do you think? Will TSG make it to April 18? If it takes another loan, I'd guess so. I suspect they'll try to find some way to hang on, and since they have no employees left, I guess, just a skeleton crew, if I may call it that, maybe they can hang on until April. After riding their plastic horses round and around on this sick merry-go-round called SCO litigations, reaching like drooling madmen for the brass ring since 2002, they surely won't let go of the dreams of litigation riches now.
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Authored by: Tkilgore on Wednesday, November 30 2011 @ 08:34 PM EST |
For corrections, if any are needed. [ Reply to This | # ]
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- Mat Hatter's -> Mad Hatter's - Authored by: egan on Wednesday, November 30 2011 @ 10:19 PM EST
- the Utah -> Utah - Authored by: egan on Wednesday, November 30 2011 @ 10:21 PM EST
- "It paid out $19,932 in stock options in October" not! - Authored by: Anonymous on Wednesday, November 30 2011 @ 11:40 PM EST
- 4 1/2 months not 5 1/2 - Authored by: jmc on Thursday, December 01 2011 @ 02:58 AM EST
- MORs pdf's reversed: 1373->1372, 1372 ->1373 - Authored by: Laomedon on Thursday, December 01 2011 @ 11:01 AM EST
- And the "reorganization" expenses, attributed to SCO Group instead, totaled $700,276. - Authored by: Anonymous on Thursday, December 01 2011 @ 11:39 PM EST
- Corrections - Authored by: Anonymous on Friday, December 02 2011 @ 03:36 PM EST
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Authored by: Tkilgore on Wednesday, November 30 2011 @ 08:35 PM EST |
Please stay off topic. [ Reply to This | # ]
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Authored by: Tkilgore on Wednesday, November 30 2011 @ 08:37 PM EST |
Discussion of news picks articles, under here. [ Reply to This | # ]
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Authored by: Tkilgore on Wednesday, November 30 2011 @ 08:38 PM EST |
Transcriptions of Comes documents here, please. [ Reply to This | # ]
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Authored by: pem on Wednesday, November 30 2011 @ 08:48 PM EST |
Then it can play out like a Disney movie, with the bad guy finally well and
truly hoist on his own petard, despite everybody else playing fair.[ Reply to This | # ]
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Authored by: Grog6 on Wednesday, November 30 2011 @ 08:49 PM EST |
Is apparently that little voice whispering:
Beeeelllliiiiooooonnnsssss... Cahn is apparently hearing it now.
Apparently the love of money is more powerful to some than the fear of the
Nazgul.
My money is on any law firm that can get nicknamed the Nazgul, actually. :)
I would love to see IBM pierce the corporate veil; faced with prison time, these
guys would make sewer rats look honorable and tame.
:)
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I am not a Number, I am a Free Man. - Number 6[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, November 30 2011 @ 09:01 PM EST |
Keep your head!
Keep your head![ Reply to This | # ]
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- Wrong - Authored by: Anonymous on Thursday, December 01 2011 @ 07:55 PM EST
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Authored by: Anonymous on Wednesday, November 30 2011 @ 10:05 PM EST |
Like I have said before, his name should be spelled Con not
Cahn.
[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, November 30 2011 @ 10:09 PM EST |
I think "settlement payments" in this context is the petty
cash that is paid in either direction after a big deal to
correct for any minor discrepancies in the original payment.
Like if you buy a house for $100.000, there can be some
minor back-and-forth amounts because the wrong party laid
down the cash for minor stuff like a load application fee or
the value of an included/not-included piece of furniture.
Specifically, this may be about unXis paying some
operational bills (like electricity) related to the time
before the sale, or the hourly rates of the unXis staffers
who continued to collect SVRX royalties for Novell until the
SCO trustee told them to stop doing that, as the cost
exceeded the potential revenue. Silly stuff like that,
added up to some odd number payable a few months after the
main transaction. There may be a document somewhere
itemizing the bill.
(I continue to consider the asset-sale-without-poison-parts-
to-new-replacement-corporate-entity unXis as the completed
reorganization plan, with TSG being just the tombstone empty
shell ghost left behind to survive just long enough for the
transaction to become legally irreversible so a Ch. 7
trustee cannot demand the assets back).
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Authored by: Anonymous on Wednesday, November 30 2011 @ 10:35 PM EST |
I would love to see psychological profiles of Judges Cahn and
Gross. Are they just ignorant and confused? Are they self-
serving leeches? Are they just easily controlled by smooth-
talking salesmen? Maybe just totally clueless but too proud
to admit it?
None of this really makes sense anymore. [ Reply to This | # ]
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Authored by: Yossarian on Thursday, December 01 2011 @ 03:04 AM EST |
I think that by now even the trustee knows how hopeless the
case against IBM is. IMO he sends IBM a clean message:
"Either pay me to go away or I'll bleed you with court
filings." His point is that from cold economic point of view
paying a little and ending the saga makes sense.
My guess is that the judge in Utah followed the Novell case
and he knows that SCO has no case against IBM. He has to hear
such a baseless case, but he does not have to give it any
priority. And that is just fine with IBM.[ Reply to This | # ]
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Authored by: SilverWave on Thursday, December 01 2011 @ 03:06 AM EST |
Well this hearing will be interesting...
Just seeing what daft theory they bring out net is allways amusing.
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RMS: The 4 Freedoms
0 run the program for any purpose
1 study the source code and change it
2 make copies and distribute them
3 publish modified versions
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Authored by: DannyB on Thursday, December 01 2011 @ 09:20 AM EST |
That April date will put us past the point of nine completed years and this
farce will be into its tenth year.
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The price of freedom is eternal litigation.[ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 01 2011 @ 03:22 PM EST |
Bleak House, a book and movie, while tedious, is a perfect example of this
farce. Lawyer after lawyer getting his foot in the door to put a claim on an
estate. Milk the cow until she's bone dry, then carve up the corpse.
This practice of lawyers is why Shakespeare wrote in Henry VI (part 2):
'The first thing we do, let's kill all the lawyers'
Often it seems a good idea today.[ Reply to This | # ]
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Authored by: Anonymous on Saturday, December 03 2011 @ 07:27 PM EST |
With the skeletons rattling their bones for a percussion section.
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