Bonum Certa Men Certa

More SCO Headlines and What Comes Next

"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



Summary: Another set of newer links for SCO trackers

SCO vs. Linux: an end in sight?

Following the bankruptcy court's decision to entrust the continuation of SCO Group's business to a trustee, there's been a lot of head-scratching over the future of the company. Judge Kevin Gross has yet to appoint a trustee to take the reins at SCO and the Office of the United States Trustee Program has yet to propose someone who will be acceptable to all sides to fill the post. Whoever is appointed, going by the judge's very clear statement on the matter, is likely to have little room to manoeuvre:


SCO can't sell itself. Losses of $8.7 million since March

Gross has some harsh details about SCO's financial situation in his legal opinion document.

"It is an understatement to stay that since the filing of their bankruptcy the Debtors financial situation has greatly declined," Gross stated. "Their own Operations Monthly Operating Report for March 31, 2009, the latest Monthly Operating Report which Debtors have filed, shows that Debtors have lost $8,652,612 since filing, without taking into account reorganization costs. These losses compare to total assets of $8.3 million of which there is $728,537 of unrestricted cash and net accounts receivable of $1.4 million."


Does the SCO appeal matter anymore?

A trustee can certainly pursue any legal rights that SCO might have. But, those rights include suing the SCO lawyers for malpractice. Or, for the return of at least some of that $30 million or so in legal fees paid based upon the representation to SCO management in the past that SCO had a case against Novell, IBM and the others. And, that if SCO embarked upon a litigation plan, Red Hat would not sue them for damages as well.


Trusting SCO

The SCO litigation against — well, let's be honest, against anyone they can think of — has gone on and on and on. As 2007 drew to a close, it seemed the end was in sight, after the company was forced to seek bankruptcy protection to avoid being thrashed in court — which eventually happened anyway. Now it seems the end may really be in sight.

SCO's bankruptcy "protection" has turned out to be a sieve rather than a safe — what was supposed to preserve the company's assets in order to protect the interests of its creditors has turned into an opportunity to funnel out as much cash as possible so IBM and Novell can't recover it. For some time, those familiar with SCO and its abnormal way of doing business have wondered how long it would take for the Bankruptcy Court to wake up and realize what they were up to. It would appear from Wednesday's activities that it finally has.


SCO's plan to return rejected by court

SCO's 8K About the Chapter 11 Trustee & A Change of Control Agreement

Also see:

A Look at the Microsoft-funded SCO Lawsuit in Light of Newer Anti-Linux Microsoft Lawsuits

Novell Responds to SCO Ruling, More News Coverage

● Older (via Groklaw): "How, Why, and When to Seek the Appointment of a Chapter 11 Trustee"

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