More Details On What Happened At the Hearing -- New Filings, New Report(Groklaw)

More reports from the front lines. Great.

This time the report from the hearing is from Mr. Webster who is an attorney. And it is nice get a report from an attorney at the hearing. As you know it is always difficult to follow a meeting or presentation if the material is not down your line of expertise. And even if Mr. Webster's own experience or expertise is not Bankruptcy, he is able to provide valuable insight. All we lack now is the transcript which I understand is forthcoming.

A couple of ideas come to mind.

First, how did Judge Gross learn all about this case? It appears obvious that he is well aware of most of the details although formally little has been presented to him by the papers filed with the court. Could it be that he has had a conversation with Judge Kimball? It is certainly possible. Judges can call each other if they want to. And I can understand if either Judge Kimball or Judge Gross called the other. After all they have to work together. And they both know each others responsibilities. And Judge Kimball has gotten to know SCO quite well over the years. At least I would think so. But, it is idle speculation and it does not really matter.

Judge Gross held off on any motions made by Novell for good reason. Whether he has been reading Groklaw, talked to Judge Kimball or simply saw this one coming, he is undoubtedly aware of IBM, Red Hat as well as Novell. And the judge made the point that other creditors might also have reason for special consideration. Besides, if anybody does, a bankruptcy judge knows that all creditors are angeling for some kind of privilege or leg up on getting their hands on what little money remains. After all, it is a bankruptcy. And that means money is short.

I really had to laugh at the report on what SCO told the bankruptcy judge about the property SCO owns, their bright business prospects and how they need his kind help to give them a chance. Firing their current management a long time ago would have done a lot more for the company than this poor courtroom can do. Bankruptcy courts can not print money. All they can do is slow things down a bit so that well meaning companies can work things out. But, that means that the crooks can continue to ply their trade too. So in my mind, there is little doubt that when Judge Gross said that others may have similar claims so he is holding off for now, he is waiting to hear from IBM and possibly Red Hat. Or, perhaps any other creditors that have a special beef. Nothing surprises the bankruptcy court. So get the petitions in, get feedback from all of the creditors and go from there. In the meantime, people do need to eat.

Most bankruptcies are dry, boring and really not very interesting. But, unlike most, this one could get interesting. Trustees are charged with the responsibilities of gathering together all the cash they can get their hands on (legally). SCO management has been do the same except for the legal part. The SCO lawyers have $30 million and at least some of that is in play. But, the current SCO management has to be removed first. In time I believe it will become obvious to the US Trustee as well as Judge Gross that SCO management has to go.

If Judge Kimball finds that SCO owes Novell anything close to double the liquid assets shown by SCO, a lot of things could get rearranged in a hurry.

IBM has yet to make its move if it is going to do so. And that case is stayed unless IBM petitioned the Delaware Court. And they may not. Same with Red Hat.