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SCO Preps Appeals Against Novell and IBM 163

Posted by samzenpus
from the harder-to-kill-that-the-tarrasque dept.
An anonymous reader writes "It looks like SCO will be emerging from the almost dead soon, with new owners and $100 million on board. SNCP is adjusting the business strategy, according to this report on TG Daily, SCO is saying goodbye to CEO Darl McBride and is also preparing to appeal the summary judgments in the cases against Novell and IBM. If you have thought the chapter was closed, think again. Those $100 million can go a long way (even if SCO has to pay 17% interest on it)."
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SCO Preps Appeals Against Novell and IBM

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  • by MintMMs (909563) on Thursday March 06, 2008 @12:13AM (#22659492)
    Doesn't the bankruptcy trustee have to approve the sale first? The article sounds like this is already a done deal.. Dang, I need to start reading Groklaw again.
  • The lost cause (Score:-1, Informative)

    by Anonymous Coward on Thursday March 06, 2008 @12:15AM (#22659506)
    Never attribute to conspiracy what you can ascribe to stupidity.
  • Bad summary (Score:5, Informative)

    by schon (31600) on Thursday March 06, 2008 @12:17AM (#22659530)
    They won't be emerging from the almost dead, and they won't have $100M, and it's not 17%

    They're still almost dead - this deal doesn't change anything about the fact that they owe a ton of cash to Novell, and will soon owe more to IBM.

    The $100M is really $5M, plus a LOAN of *up to* $100M.

    And the loan's interest rate is 17% plus prime (so closer to 21%.)

    This is like you claiming that MBNA invested $50,000 in you when you signed up for a new credit card.
  • Inaccurate subject (Score:5, Informative)

    by EssenceLumin (755374) on Thursday March 06, 2008 @12:19AM (#22659540)
    First of all this is at least a few weeks old. Check Groklaw. Second they are not giving SCO $100 mil outright. They are giving $5 mil with an option to loan another $95 mil over 5 years.
  • by belmolis (702863) <{billposer} {at} {alum.mit.edu}> on Thursday March 06, 2008 @12:44AM (#22659694) Homepage

    Actually, Groklaw [groklaw.com] has begun to deal with other cases of dubious IP claims and attacks on free software, open standards, and so forth, so it will still have a reason for existence once SCO is kaput. The current top article, for example, is about the ISO BRM on OOXML.

  • Re:What the hell? (Score:5, Informative)

    by renegadesx (977007) on Thursday March 06, 2008 @12:57AM (#22659788)
    Serious answer: Apparently this is Saudi money.
    However the jury is still out on weather this is another Microsoft thing like BayStar
    http://www.eweek.com/c/a/Desktops-and-Notebooks/Whats-Behind-the-SCO-Buyout/ [eweek.com] SJVN's oppinion incase you are interested
  • by tomhudson (43916) <barbara.hudson@D ... com minus painte> on Thursday March 06, 2008 @12:59AM (#22659800) Journal

    First of all this is at least a few weeks old. Check Groklaw. Second they are not giving SCO $100 mil outright. They are giving $5 mil with an option to loan another $95 mil over 5 years.

    ... and they're even backtracking on the whole deal now, saying it depends on due diligence, etc ...

    It's YASPS - "Yet Another Stock Pump Scheme". Darl, contrary to his public protests, is VERY happy to be getting out/cashing out.

  • by frostband (970712) on Thursday March 06, 2008 @01:24AM (#22659966) Homepage
    These aren't your typical undead.

    They are SCOmbies and their weaknesses are still unknown (their mortal weaknesses that is--I think plenty is known about their legal weaknesses).

  • Re:Well (Score:4, Informative)

    by DaveAtFraud (460127) on Thursday March 06, 2008 @01:48AM (#22660086) Homepage Journal
    http://finance.yahoo.com/q/pr?s=EOG [yahoo.com]

    Read the business summary and note the previous name. Bankruptcy, especially Chapter 11, doesn't mean a company disappears. If there are parts of the company that are viable, a reorganization means these parts get a new lease on life.

    Cheers,
    Dave
  • by dmgxmichael (1219692) on Thursday March 06, 2008 @02:00AM (#22660154) Homepage

    I don't care how slick the lawyer is, SCO had a summary judgment against them. Provided the judge in the case dotted all the i's and crossed all the t's those things are damn near impossible to successfully appeal. I'd put the odds against successful appeal at 20 to 1. More likely than not the appeals court will simply say, 'No' and that will be the final whimper of SCO.

  • by poetmatt (793785) on Thursday March 06, 2008 @02:31AM (#22660310) Journal
    Just a FYI, this deal has not been approved. So all this "SCO is going to be saved" stuff, has no factual basis whatsoever. Bankruptcy court would have to approve of it, and that is not likely at all. So the slashdot article here = incorrect.
  • Re:Put SCO down (Score:5, Informative)

    by neurojab (15737) on Thursday March 06, 2008 @03:02AM (#22660442)
    How many of you would contribute $50 to take a controlling interest in this festering pimple of an "IP" company? If the next ~80,000 /. regulars that read this were willing the company could be taken over and put down, permanently.

    It's too late for that. SCO is in bankruptcy court, in chapter 11 proceedings. This means that the current stockholders have effectively no say in what goes on at this point. It's up to the SCO to come up with a reorganization plan that will allow it to continue to operate. Generally a reorganization plan includes cancelling any and all common stock, as does theirs "On the Effective Date, the existing common stock and common stock equivalents of SCO Group shall be cancelled and extinguished." Anyone buying the stock now is hoping for a miracle and that SCO will somehow continue to operate without completing chapter 11 reorganization.

    In summary, doing this would neither give you control of the company now, nor when they exit chapter 11. ... not a financial expert either, but did own WCOM stock :)
  • Re:What about Darl? (Score:3, Informative)

    by david_thornley (598059) on Thursday March 06, 2008 @09:42AM (#22662160)

    That's one of the problems with US corporate law. There are reasons, perhaps good ones, why corporate officers aren't directly penalized for making wrong decisions (in a company running legally and ethically, the company can and will administer appropriate penalties). However, when the top officers of a company like SCO or Enron do the things that they have done, there needs to be personal responsibility.

    Not that it's simple to draw the line.

  • Re:Put SCO down (Score:3, Informative)

    by Jason Levine (196982) on Thursday March 06, 2008 @10:09AM (#22662436)
    Not to mention the fact that, even if you did manage to buy control of SCO, you would inherit the pending lawsuits against them. You could easily drop your end of the lawsuit against Novell, IBM, etc, but Novell and IBM's countersuits wouldn't magically go away. And once the judgment came down requiring you to pay Novell their money back, you'd be back in Chapter 11 (or worse). So while it makes for a nice fantasy to think of a bunch of geeks buying SCO's bloodied carcass, it's just not a practical reality.
  • by Jaywalk (94910) on Thursday March 06, 2008 @01:11PM (#22664586) Homepage
    It's always important to notice when an article starts off with "The SCO Group plans ..." and then doesn't seek out any verification or outside opinions. It's probably another lazy journalism piece where the author simply rewords a press release and calls it "news". All this article does is lay out a motion with no investigation into the context.

    For example, you would think he would have noticed that Novell has already objected [groklaw.net] to the reorg because of the sketchy details. Like, does SNCP even have access to that kind of money? There is this article [itjungle.com] that says Norris might have Middle East connections, but no explanations of why those connections would want in on the SCO case. Or how much of the bill they'd be willing to cough up. The schedule's a bit iffy too. Novell points out that SCO's hanging on to the "definitive documents" on the reorg and isn't planning on releasing them until the day that objections to the reorg are due. Read carefully and you'll see that objections are due by March 26th at 4:00pm, while the documents are to be released on March 26th, but with no time stated. Any bets on SCO planning on providing those at 4:01pm?

    Keep in mind that SCO has already proposed and scrapped [groklaw.net] a bailout deal. In that one, they were playing a shell game where all the company's assets (and execs) went one way, while all the company's liabilities went the other. Needless to say, the courts weren't going to let that happen.

    The bottom line is that this is SCO, so you already know it's a scam. It's just a matter of waiting and watching to determine what kind of scam they're trying to run this time.

A CONS is an object which cares. -- Bernie Greenberg.

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