Going for the fall …

Well, the circus and legal theatre that SCO has created for itself is not quite over yet. Novell appears to be doing something along the lines of what I suggested.

I wrote this:

Novell, I would, rather strongly, suggest you try to force them into liquidation or at least get the court to put all their cash and assets into trust until the amounts owned can be worked out, specifically so you don’t let them compound their previous behavior, and deny you the money they owe you. Otherwise, if you do not, they are going to squander all your money fighting you. You will be paying their lawyers, in essence, to protect them from paying you what they owe you.

And today, I read on an article linked from /. that

And time is of the essence since there’s a possibility SCO “may run low or even completely out of cash during the process of trying to reorganize,” Novell said in court documents filed Thursday.

… or they may run out of Novell’s money, fighting Novell who wants to take possession of Novell’s money.

Novell is also trying to protect royalties SCO collects from Unix and Unixware software licensees and remits annually to the software developer. SCO is required to continue to remit between $500,000 and $800,000 annually to Novell — the next payment is due Nov. 14. SCO remitted $696,413 to Novell between the third quarter of 2006 and the second quarter of this year.

“Absent SCO’s immediate remittance of the royalties to Novell, SCO may improperly use Novell’s property to fund SCO’s bankruptcy, making Novell a forced lender of new high-risk loans to the estate,” Novell said. “This would turn Novell’s property into an involuntary gift to the estate and its creditors.”

I won’t speculate whether or not this motion would be granted. I would speculate that at minimum, Novell and other lawsuit parties would want to be on the creditors committee (after SCO attempted to stuff its own friends on there). If Novell get this, I expect them to try to force a chapter 7 involuntary liquidation with them in a preferred position.

Either way, you have a very short life expectancy if your name is SCO. This shot is a setup for the kill. If they don’t succeed at getting it, they are also positioning themselves well for future shots.

Today is October 6th, I will be surprised if SCO exists as a viable corporate entity past 31-December-2007.

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