Bankruptcy a hop, skip and a jump away
Message ID: 267187
Posted By: drichards1953
Posted On: 2005-05-20 11:56:00
Subject: Bankruptcy a hop, skip and a jump away
Recs: 42
I am truly convinced that Yarro and McBride thought that IBM would roll over and buy SCO, no matter to cost. IBM called their bluff, and rightly so. As Director of Research in a law firm, I cannot even think of any of our attorneys filing a coyright case where there is not a clear indication of ownership of the copyright. This is to say nothing of a clear list of the offending violations.
While SCO runs out of cash, you have Darl and the other senior management drawing very large salaries. Very large for a company the "real" size of SCO.
The bankruptcy court will install a trustee of protect the interests of the creditors and see if there are any assets left. The first thing the trustee will do is determine if the company is viable and can pay the current on-going bills. If not, it is shut down, at once. The trustee will then look at all assets. If they have not produced any solid evidence of the alleged violations and that SCO truly owns the copyrights on Unixware, it is likely the case will be killed, at once, by the trustee.
Now this is the fun part. The trustee can order anyone or any company that has been paid in the six months prior to filing, to return the money. Even further back if there was certain type of misconduct. That would include payments to law firms. The trustee will also review things like overly generous salaries or other compensation. That would make a bad day for Darl!
A bankruptcy court can pretty much do anything heshe wants in order to recover money to pay the creditors. Creditors beyond the usual understanding include people that purchased support services, and SCO did not deliver, persons that purchased software, expecting support. It could include Daimler-Chrsyler seeking recovery on their legal costs. It could include claims by AutoZone, Novell,IBM, Baystar and the others based on any number of financial harm claims caused by SCO activites.
Obviously the claims against a bankrupt SCO would be huge and the reality is that SCO has little in "real" assets. What do they hold a clear tittle to? Not much outside of some computers and office equipment. There is not a clear title to Unixware, and since they paid Novell royalties on Unixware the water becomes very cloudy there.
If the trustee finds misrepresentation by the officers of SCO Group in the various filings with the SEC andor NASDAQ then there is really big trouble. That is the stuff people go to jail over.
There is big trouble brewing for SCO. I am not sure they understand, yet. At some point a judge is going to say enough. If anyone of the judges in the assortment of cases, orders SCO to pay even the legal costs of the other party they will be cooked. Those costs will easily be several million dollars. I see no indication that SCO truly thought they would go this far in the various court actions. I am convinced they thought these large corporations would just roll over and cry "don't hurt us Darl, we'll pay." When that did not happen, their dream fell apart.
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The text of this Yahoo Message Board post has been licensed for
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Posted By: drichards1953
Posted On: 2005-05-20 11:56:00
Subject: Bankruptcy a hop, skip and a jump away
Recs: 42
I am truly convinced that Yarro and McBride thought that IBM would roll over and buy SCO, no matter to cost. IBM called their bluff, and rightly so. As Director of Research in a law firm, I cannot even think of any of our attorneys filing a coyright case where there is not a clear indication of ownership of the copyright. This is to say nothing of a clear list of the offending violations.
While SCO runs out of cash, you have Darl and the other senior management drawing very large salaries. Very large for a company the "real" size of SCO.
The bankruptcy court will install a trustee of protect the interests of the creditors and see if there are any assets left. The first thing the trustee will do is determine if the company is viable and can pay the current on-going bills. If not, it is shut down, at once. The trustee will then look at all assets. If they have not produced any solid evidence of the alleged violations and that SCO truly owns the copyrights on Unixware, it is likely the case will be killed, at once, by the trustee.
Now this is the fun part. The trustee can order anyone or any company that has been paid in the six months prior to filing, to return the money. Even further back if there was certain type of misconduct. That would include payments to law firms. The trustee will also review things like overly generous salaries or other compensation. That would make a bad day for Darl!
A bankruptcy court can pretty much do anything heshe wants in order to recover money to pay the creditors. Creditors beyond the usual understanding include people that purchased support services, and SCO did not deliver, persons that purchased software, expecting support. It could include Daimler-Chrsyler seeking recovery on their legal costs. It could include claims by AutoZone, Novell,IBM, Baystar and the others based on any number of financial harm claims caused by SCO activites.
Obviously the claims against a bankrupt SCO would be huge and the reality is that SCO has little in "real" assets. What do they hold a clear tittle to? Not much outside of some computers and office equipment. There is not a clear title to Unixware, and since they paid Novell royalties on Unixware the water becomes very cloudy there.
If the trustee finds misrepresentation by the officers of SCO Group in the various filings with the SEC andor NASDAQ then there is really big trouble. That is the stuff people go to jail over.
There is big trouble brewing for SCO. I am not sure they understand, yet. At some point a judge is going to say enough. If anyone of the judges in the assortment of cases, orders SCO to pay even the legal costs of the other party they will be cooked. Those costs will easily be several million dollars. I see no indication that SCO truly thought they would go this far in the various court actions. I am convinced they thought these large corporations would just roll over and cry "don't hurt us Darl, we'll pay." When that did not happen, their dream fell apart.
------------------------------------------------------------
The text of this Yahoo Message Board post has been licensed for
copying and distribution by the Yahoo Message Board user
"drichards1953" under the following license:
License: CC Attribution-NonCommercial-ShareAlike v2.0
------------------------------------------------------------