02.21.10

Gemini version available ♊︎

Just in Time: SCO Finds Another Cash Injection Proposal… from Former SCO Chairman

Posted in Bill Gates, Finance, Free/Libre Software, GNU/Linux, Microsoft, Novell, SCO at 10:50 am by Dr. Roy Schestowitz

Money in Brazil

Summary: The company that just refuses to die suddenly finds a new fountain of cash and Microsoft continues to stifle Free software through infighting and infiltrations

MICROSOFT has a proven (and thus factual) history of putting money in SCO, which has been suing Linux for almost a decade, always finding some extra cash to fund more motions and ensure that the trial does not end. On numerous occasions in the past we showed that Alwaleed bin Talal, a friend and/or partner of Microsoft’s Bill Gates, made his appearance in relation to investments in SCO [1, 2, 3, 4]. There are a few other examples like this (the firm of Bill Gates’ father for example), where Microsoft seemed like it was still funding these baseless lawsuits against Linux. Well, according to Groklaw, Ralph Yarro wanted to give a couple of million to SCO just a short while ago:

You’ve been expecting this, I’m sure. Ralph Yarro wants to loan SCO some money, $2 million, or more accurately up to $2 million, and the SCO trustee, Edward Cahn, wants to let him. It’s all at “arm’s length” and “in good faith” negotiations with this SCO insider, don’t you know. So, does this mean nobody else wants to fund SCO? No potential buyers? Just Ralph? And Cahn asks the court to please shorten the time to handle the motion. Is SCO on its last legs or something?

The motion calls Yarro the “former Chairman” of SCO’s board of directors. See all the stuff you can hide if you don’t file MORs or with the SEC, despite being a public company? Say, didn’t Cahn promise to file those MORs by now? What, they look too awful? Still, they’re supposed to be filed. Well, well. SCO’s MO seems to be catching. Delay, delay, delay while they keep their greedy hand reaching desperately for the brass ring.

“The Trustee is advised that Seung Ni Capital Partners, L.L.C. is a newly formed entity formed by Ralph J. Yarro III (“Yarro”) and was created for the purpose of providing postpetition financing to the Debtors. Since Yarro is the former Chairman of the Debtors’ Board of Directors and the Debtors’ largest shareholder, Yarro is an insider pursuant to Bankruptcy Code section 101(31). See 11 U.S.C. § 101(31). The Trustee represents that at all times the negotiations among the Trustee, his advisors and Yarro were at arms-length and in good faith.”

Wait. Look at page 2. It’s a loan from Ralph in public and “other lenders from time to time”. Uh oh. Page 3:

9. In accordance with the Credit Agreement, additional Lenders may also make loans to the Debtors under the Credit Facility from time to time.

Not another weirdo deal with shadows… Remember the York deal in 2007, speaking of shadows? It was a Super Dooper Senior Secured Super-Priority Credit Agreement too. We’d better look at the exhibits, which set forth the precise terms. I’ll swing back by after I do that.

[...]

The H has coverage of this too.

In the dispute between the SCO Group and Novell about the copyright for Unix, the new jury trial scheduled to begin on the 8th of March is apparently set to go ahead: according to a statement by Chapter 11 trustee Edward Cahn, SCO’s majority owner Ralph Yarro wants to inject a loan of $2 million dollars into the financially stricken company.

Legal observers at Groklaw reported that Ralph Yarro intends to finance the loan via his investment company, Seung Ni Capital Partners. The loan is termed to run for a year at an interest rate of 6.6%. SCO will have to repay the loan before settling its other open debts. Among these is a court order to pay $2.5 million to Novell. Earlier, trustee Cahn had told the bankruptcy court that SCO was in urgent need of further funding if it was to survive the new trial. The trustee said that without further funding he would not be able to continue SCO’s business.

Pogson wrote about the duration of this. The longer it goes on, the more Microsoft benefits. It provides FUD against Linux.

Presumably Novell will soldier on with this handicap and SCO gets to bring up years of irrelevant evidence as it did before. How the trial can go in two or three weeks with this Pandora’s box now opened is beyond me.

Another strange thing. The judge made his ruling without a hearing… That can happen if the matter is clear but there is obviously a dispute. Why not have it out in a hearing? I fear the fix is in. SCO is getting everything its own way, even having Utah law applied to a California contract. Novell will have to start all over again in SCOTUS. How many years will it take?

Other new articles from Groklaw (regarding SCO) are:

More filings can be found here.

What’s also worth commenting and remarking about is Microsoft’s OSBC keynote. Darryl Taft wrote about it, but he changed his headline (or maybe the editor did) from “Microsoft to Spread Open Source Love at Business Conference” to “Microsoft to Talk Open Source at OSBC”. Why the sudden change?

In any case, Dana Blankenhorn wrote about this too and he used a provocative headline, namely “Will open source accept Microsoft leadership”:

It will once again be a “platinum sponsor” at the Open Source Business Conference in San Francisco next month and its National Technology Officer for the U.S., Stuart McKee, will deliver a keynote.

At Groklaw, Pamela Jones wrote: “This is where precise language matters. Free Software, the F in FOSS, will never accept Microsoft’s “leadership”, since that leadership has given evidence of attempting to destroy or make useless the GPL and has actively FUDed against Linux, threatening it with patents. Besides, their software is poorly designed, in the community’s view, so leadership to where? to what? for whose benefit? If you read the exhibits in the Comes v. Microsoft litigation, you’ll find there have been earlier “charm offensives”, as Dana calls it, and they were indeed for the purpose of destroying competitors. So the real answer to Dana’s question is, only if they’re stupidly naive.”

“If you read the exhibits in the Comes v. Microsoft litigation, you’ll find there have been earlier “charm offensives”, as Dana calls it, and they were indeed for the purpose of destroying competitors.”
      –Pamela Jones
Regarding the CodePlex Foundation picking Paula Hunter as Executive Director (we covered this in [1, 2, 3]), Jones quotes Andy Updegrove: “As you’ll see from the announcement, one of Paula’s prior jobs was as the Executive Director of UnitedLinux. UL was a client of mine, and that’s where I first met Paula. And if you’ve never heard the saga of UL, it’s a rather fascinating story.

“Since it was a client, I can’t go into many details, but suffice it to say that it was an early casualty of SCO’s maniacal and misguided obsession with trying to tax the development of Linux.”

“And now she works for Microsoft’s Codeplex,” says Jones. It’s a small world when Microsoft acquires what only looks like competitors.

“On the same day that CA blasted SCO, Open Source evangelist Eric Raymond revealed a leaked email from SCO’s strategic consultant Mike Anderer to their management. The email details how, surprise surprise, Microsoft has arranged virtually all of SCO’s financing, hiding behind intermediaries like Baystar Capital.”

Bruce Perens

Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Reddit
  • email

Decor ᶃ Gemini Space

Below is a Web proxy. We recommend getting a Gemini client/browser.

Black/white/grey bullet button This post is also available in Gemini over at this address (requires a Gemini client/browser to open).

Decor ✐ Cross-references

Black/white/grey bullet button Pages that cross-reference this one, if any exist, are listed below or will be listed below over time.

Decor ▢ Respond and Discuss

Black/white/grey bullet button If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

DecorWhat Else is New


  1. IRC Proceedings: Monday, October 25, 2021

    IRC logs for Monday, October 25, 2021



  2. [Meme] “Social Democracy” at the EPO

    Some comments on the current situation at the European Patent Office from Goran Gerasimovski, the new EPO Administrative Council delegate for North Macedonia and Social Democratic candidate for mayor of Centar (a municipality of Skopje)



  3. [Meme] António Campinos Visits the OSIM

    António Campinos visits OSIM Director-General Ionel Muscalu in February 2014



  4. [Meme] [Teaser] Meet the President

    Later today we shall see what Romania did for Battistelli



  5. Links 26/10/2021: Latte Dock 0.10.3 and Linux 5.15 RC7

    Links for the day



  6. Gemini Protocol's Originator: “I Continue to Care About This Project and I Care About the Community That Has Formed Around It.”

    'Solderpunk' is back from a long hiatus; this bodes well for Geminispace, which grew fast in spite of the conspicuous absence



  7. Bulgarian Like Bavarian Serfdom

    Bulgarian politics seem to have played a big role in selecting chiefs and delegates who backed Benoît Battistelli‘s unlawful proposals, which treat workers almost like slaves and ordinary citizens as disposable ‘collaterals’



  8. The EPO’s Overseer/Overseen Collusion — Part XXIII: The Balkan League - Bulgaria

    Today we examine the role of Bulgaria in Benoît Battistelli‘s liberticidal regime at the EPO (as well as under António Campinos, from 2018 to present) with particular focus on political machinations



  9. Links 25/10/2021: New Slackware64-current and a Look at Ubuntu Budgie

    Links for the day



  10. Links 25/10/2021: pg_statement_rollback 1.3 and Lots of Patent Catchup

    Links for the day



  11. Microsoft GitHub Exposé — Part III — A Story of Plagiarism and Likely Securities Fraud

    Today we tread slowly and take another step ahead, revealing the nature of only some among many problems that GitHub and Microsoft are hiding from the general public (to the point of spiking media reports)



  12. [Meme] [Teaser] Oligarchs-Controlled Patent Offices With Media Connections That Cover Up Corruption

    As we shall see later today, the ‘underworld’ in Bulgaria played a role or pulled the strings of politically-appointed administrators who guarded Benoît Battistelli‘s liberticidal regime at the EPO



  13. IRC Proceedings: Sunday, October 24, 2021

    IRC logs for Sunday, October 24, 2021



  14. Links 25/10/2021: EasyOS 3.1 and Bareflank 3.0

    Links for the day



  15. The Demolition of the EPO Was Made Possible With Assistance From Countries That Barely Have European Patents

    The legal basis of today's EPO has been crushed; a lot of this was made possible by countries with barely any stakes in the outcome



  16. The EPO’s Overseer/Overseen Collusion — Part XXII: The Balkan League - North Macedonia and Albania

    We continue to look at Benoît Battistelli‘s enablers at the EPO



  17. Links 24/10/2021: GPS Daemon (GPSD) Bug and Lots of Openwashing

    Links for the day



  18. Links 24/10/2021: XWayland 21.1.3 and Ubuntu Linux 22.04 LTS Daily Build

    Links for the day



  19. IRC Proceedings: Saturday, October 23, 2021

    IRC logs for Saturday, October 23, 2021



  20. Links 24/10/2021: Ceph Boss Sage Weil Resigns and Many GPL Enforcement Stories

    Links for the day



  21. GAFAM-Funded NPR Reports That Facebook Let Millions of People Like Trump Flout the So-called Rules. Not Just “a Few”.

    Guest post by Ryan, reprinted with permission



  22. Some Memes About What Croatia Means to the European Patent Office

    Before we proceed to other countries in the region, let’s not forget or let’s immortalise the role played by Croatia in the EPO (memes are memorable)



  23. Gangster Culture in the EPO

    The EPO‘s Administrative Council was gamed by a gangster from Croatia; today we start the segment of the series which deals with the Balkan region



  24. The EPO’s Overseer/Overseen Collusion — Part XXI: The Balkan League – The Doyen and His “Protégée”

    The EPO‘s circle of corruption in the Balkan region will be the focus of today’s (and upcoming) coverage, showing some of the controversial enablers of Benoît Battistelli and António Campinos, two deeply corrupt French officials who rapidly drive the Office into the ground for personal gain (at Europe’s expense!)



  25. Links 23/10/2021: FreeBSD 12.3 Beta, Wine 6.20, and NuTyX 21.10.0

    Links for the day



  26. IRC Proceedings: Friday, October 22, 2021

    IRC logs for Friday, October 22, 2021



  27. [Meme] [Teaser] Crime Express

    The series about Battistelli's "Strike Regulations" (20 parts thus far) culminates as the next station is the Balkan region



  28. Links 23/10/2021: Star Labs/StarLite, Ventoy 1.0.56

    Links for the day



  29. Gemini on Sourcehut and Further Expansion of Gemini Space

    Gemini protocol is becoming a widely adopted de facto standard for many who want to de-clutter the Internet by moving away from the World Wide Web and HTML (nowadays plagued by JavaScript, CSS, and many bloated frameworks that spy)



  30. Unlawful Regimes Even Hungary and Poland Would Envy

    There’s plenty of news reports about Polish and Hungarian heads of states violating human rights, but never can one find criticism of the EPO’s management doing the same (the mainstream avoids this subject altogether); today we examine how that area of Europe voted on the illegal "Strike Regulations" of Benoît Battistelli


RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

Recent Posts